Devon Energy Corp. (NYSE:DVN)

Current Assets

The current assets exhibited a declining trend from 2018 through 2020, decreasing from 4,437 million US dollars to 3,260 million US dollars. This was followed by a recovery in 2021, with current assets increasing to 4,249 million US dollars, before slightly decreasing again in 2022 to 3,891 million US dollars. Overall, the values suggest some volatility in short-term asset levels, with a notable dip in 2020 and partial rebound thereafter.

Adjusted Current Assets

The adjusted current assets closely mirror the pattern observed in current assets during the entire period, starting at 4,445 million US dollars in 2018 and falling to 3,271 million US dollars in 2020. A significant increase is then seen in 2021 to 4,256 million US dollars, followed by a modest decrease to 3,900 million US dollars in 2022. The alignment with current assets indicates consistent adjustment methodology and similar underlying movements in operational liquidity measures.

The analysis of the annual financial data reveals notable fluctuations in the company's asset base over the reviewed periods. The total assets and adjusted total assets display a similar trajectory, indicating consistency between reported and adjusted figures.

Total Assets

The total assets experienced a substantial decline from 19,566 million US dollars at the end of 2018 to 9,912 million US dollars at the end of 2020, representing a decrease of almost 49%. This period reflects a significant reduction in the asset base, possibly due to asset sales, impairments, or revaluation impacts. Following this low point in 2020, total assets showed strong recovery, increasing to 21,025 million US dollars in 2021 and further to 23,721 million US dollars in 2022. This rebound exceeds the initial 2018 level, suggesting expansion or asset acquisitions during these later years.

Adjusted Total Assets

The adjusted total assets track closely with total assets throughout the period. Starting at 19,912 million US dollars in 2018, they follow the same downward trend and recover similarly, ending at 23,730 million US dollars in 2022. The minimal divergence between reported and adjusted figures implies limited adjustments or reclassifications in asset valuation methods across these years.

Overall, the data indicates a period of contraction in total assets through 2020, followed by a robust recovery and growth phase in 2021 and 2022. This pattern suggests strategic repositioning or market conditions impacting asset levels significantly in the earlier years, with subsequent expansion or capitalization leading to elevated asset levels in the later periods.

The analysis of the current liabilities and adjusted current liabilities over the five-year period reveals several important trends. Both metrics show an overall fluctuating pattern with a significant increase towards the later years.

Current Liabilities

Starting from 2018, current liabilities decreased from 2,226 million US dollars to 1,927 million in 2019, and further declined to 1,440 million in 2020. This downward trend through 2020 suggests a reduction in short-term obligations or improved working capital management during this period. However, from 2020 to 2021, a sharp increase is noted as current liabilities more than doubled to 3,087 million, remaining at a similar high level of 3,105 million in 2022. This rise indicates an expansion in current obligations, which could be attributed to increased operational activities, higher short-term debt, or delayed payments.

Adjusted Current Liabilities

Adjusted current liabilities follow closely the pattern of current liabilities, confirming the reliability of the observed trend. They decreased from 2,179 million in 2018 to 1,907 million in 2019, then to 1,405 million in 2020. Subsequently, they escalated significantly to 3,049 million in 2021 and slightly increased to 3,071 million in 2022. The adjustment factor does not markedly alter the interpretation of the company's short-term obligations and potential liquidity pressures.

Overall, the financial data suggests that the company experienced a period of reduced short-term liabilities until 2020, followed by a substantial rise from 2021 onward. This trend could reflect changes in operational scale, financing strategies, or working capital dynamics, warranting further investigation into the causes and implications of increased current liabilities during the latter years.

Total liabilities

The total liabilities exhibited a decreasing trend from 2018 to 2020, declining from 10,380 million USD to 6,893 million USD. However, there was a notable reversal starting in 2021, with liabilities increasing sharply to 11,626 million USD and further rising to 12,425 million USD by the end of 2022. This indicates a significant increase in total obligations during the last two years of the period analyzed.

Adjusted total liabilities

Adjusted total liabilities followed a pattern similar to that of total liabilities, with a decrease between 2018 and 2020, moving from 9,778 million USD to 6,721 million USD. Subsequently, adjusted liabilities rose in 2021 to 11,190 million USD but then decreased slightly to 10,847 million USD in 2022. This slight decline in 2022 contrasts with the continued increase seen in total liabilities, suggesting some adjustments or reclassifications impacting the adjusted figures.

The financial data over the period from the end of 2018 to the end of 2022 demonstrates notable volatility followed by a clear recovery and growth phase in equity measures.

Stockholders’ equity attributable to Devon

This measure shows a significant decline from US$9,186 million at the end of 2018 to a low of US$2,885 million at the end of 2020, indicating a substantial reduction in equity during this period. This decline may reflect operational challenges, downturns in market conditions, or other financial pressures experienced during these years. Subsequently, there is a marked recovery starting in 2021, with stockholders’ equity rising sharply to US$9,262 million and further increasing to US$11,167 million by the end of 2022. This rebound suggests effective management actions or improved market conditions that restored and enhanced the company’s equity base.

Adjusted total equity

The adjusted total equity follows a similar trend to stockholders’ equity but maintains consistently higher values, reflecting adjustments that enhance the understanding of the company’s equity position. It decreases from US$10,134 million in 2018 to US$3,186 million in 2020, highlighting the downturn impact. Then, it recovers robustly to US$9,835 million in 2021 and continues growing to US$12,883 million by the end of 2022. The adjusted figure’s higher level compared to stockholders’ equity indicates the inclusion of additional equity components or adjustments that improve the comprehensive assessment of financial health.

Overall, the data reveal an initial period of considerable equity decline likely attributable to adverse economic or operational factors, followed by a significant recovery and growth in equity levels, signaling a positive turnaround in financial strength by the end of the observed period.

The financial data reveals several key trends in the company's capital structure over the five-year period.

Total Reported Debt

The total reported debt decreased from 5947 million USD in 2018 to 4541 million USD in 2019, stabilizing around 4550 million USD in 2020. However, it increased significantly to 6737 million USD in 2021 before slightly declining to 6697 million USD in 2022. This indicates a period of debt reduction followed by substantial borrowing in the latter years, potentially reflecting new investments or refinancing activities.

Stockholders' Equity Attributable to Devon

Stockholders' equity experienced a sharp decline from 9186 million USD in 2018 to 2885 million USD in 2020, marking a considerable reduction over three years. Post-2020, equity rebounded strongly to 9262 million USD in 2021 and further increased to 11167 million USD in 2022. This recovery suggests improved profitability or capital infusion after a period of financial strain.

Total Reported Capital

Total reported capital, the sum of debt and equity, shows a similar trend with a decrease from 15133 million USD in 2018 to 7435 million USD in 2020, followed by a pronounced increase to 15999 million USD in 2021 and 17864 million USD in 2022. The variations mirror the movements in debt and equity, implying a restructuring of the company's financial base.

Adjusted Total Debt

Adjusted total debt closely follows the pattern of total reported debt, starting at 6285 million USD in 2018, reducing to approximately 4550 million USD by 2019 and 2020, and then increasing significantly in 2021 to 6760 million USD, before a slight decrease to 6718 million USD in 2022. The slight difference between adjusted and reported debt suggests minor adjustments for off-balance-sheet items or accounting conventions.

Adjusted Total Equity

Adjusted total equity trends mirror those of reported equity, decreasing substantially to 3186 million USD by 2020 from 10134 million USD in 2018, then recovering sharply to 9835 million USD in 2021 and further ascending to 12883 million USD in 2022. The recovery in adjusted equity reinforces the narrative of financial stabilization and growth after earlier challenges.

Adjusted Total Capital

Adjusted total capital, combining adjusted debt and equity, declines from 16419 million USD in 2018 to 7739 million USD in 2020, then rises markedly to 16595 million USD in 2021 and reaches 19601 million USD in 2022. This pattern is consistent with the reported capital figures, indicating alignment between adjusted and reported financial measurements.

Overall, the analyzing period shows a trough in financial capital around 2020, characterized by lower debt and particularly diminished equity, followed by a strong recovery through 2021 and 2022 across both debt and equity components. This suggests the company underwent a phase of financial restructuring or stress leading to reduced capital levels, succeeded by renewed capital strength, possibly due to improved market conditions, operational performance, or strategic financing decisions.

Net earnings (loss) attributable to Devon

There is significant volatility in net earnings over the analyzed periods. The value starts at a high positive level of 3,064 million USD in 2018, followed by sharp declines into negative territory for two consecutive years, with losses of 355 million USD in 2019 and 2,680 million USD in 2020. A marked recovery occurs in 2021, with net earnings rebounding to 2,813 million USD, and this positive trend continues strongly in 2022, reaching 6,015 million USD, the highest level in the five-year span.

Adjusted net earnings (loss)

The adjusted net earnings display a broadly similar pattern but with some notable differences in magnitude. Beginning at 892 million USD in 2018, there is a substantial drop into negative figures in 2019 (-1,269 million USD) and further deepening in 2020 (-2,725 million USD). The recovery phase initiates in 2021, with adjusted net earnings returning to a positive 2,850 million USD. This positive trajectory is amplified in 2022, culminating in an adjusted net earnings figure of 7,200 million USD, exceeding the reported net earnings for the same year.

Overall financial performance trends

Both net earnings and adjusted net earnings exhibit a strong cyclical pattern characterized by a period of losses in 2019–2020, followed by significant recoveries in the subsequent two years. The 2020 fiscal year represents the trough of financial performance, after which the company experienced robust gains. The adjusted net earnings for 2022 surpass net earnings, which may suggest favorable adjustments from non-recurring or non-operational items in that period. The data reflects a recovery and growth phase post-2020 downturn, possibly indicating improved operational efficiency, market conditions, or strategic initiatives impacting profitability.