Stock Analysis on Net
Stock Analysis on Net

Devon Energy Corp. (NYSE:DVN)

$22.49

This company has been moved to the archive! The financial data has not been updated since November 8, 2023.

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Devon Energy Corp., consolidated income statement

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Oil, gas and NGL sales
Oil, gas and NGL derivatives
Marketing and midstream revenues
Revenues
Production expenses
Marketing and midstream expenses
Cost of revenues
Gross profit
Exploration expenses
Depreciation, depletion and amortization
Asset impairments
Asset dispositions
General and administrative expenses
Restructuring and transaction costs
Estimated future obligation under a performance guarantee
Ukraine charitable pledge
Asset retirement obligation accretion
Severance and other non-income tax refunds
Other
Other, net
Operating income (loss)
Interest based on debt outstanding
Gain (loss) on early retirement of debt
Interest income
Other
Financing costs, net
Earnings (loss) from continuing operations before income taxes
Income tax (expense) benefit
Net earnings (loss) from continuing operations
Net earnings (loss) from discontinued operations, net of income taxes
Net earnings (loss)
Net earnings attributable to noncontrolling interests
Net earnings (loss) attributable to Devon

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Revenue Trends
The company's total revenues exhibited significant variability over the five-year period. Revenues declined sharply from 10,734 million USD in 2018 to a low point of 4,828 million USD in 2020. Subsequently, revenues recovered strongly, reaching 19,169 million USD in 2022, which is the highest level in the period analyzed. Both oil, gas and NGL sales and marketing and midstream revenues followed a similar pattern, with steep declines until 2020 and marked recoveries thereafter.
Cost of Revenues and Gross Profit
Cost of revenues mirrored the revenue trend, declining to a minimum in 2020 before rising again. Production expenses and marketing and midstream expenses moved in alignment with their respective revenue streams. Gross profit decreased from 4,146 million USD in 2018 to 1,692 million USD in 2020, but then increased substantially to 10,592 million USD by 2022, reflecting improved operational profitability in the latter years.
Operating Income and Expenses
Operating income experienced considerable fluctuation. The company reported positive operating income in 2018 (1,514 million USD) that decreased significantly in subsequent years to a loss of 2,820 million USD in 2020. However, operating income rebounded markedly to 8,084 million USD in 2022. Exploration expenses remained relatively low and variable, while general and administrative expenses moderately declined over the period. Asset impairments were significant in 2020 (2,693 million USD), indicating one-time charges impacting that year's performance.
Financing and Interest Costs
Financing costs showed an overall decreasing trend after peaking in 2018, with net financing costs reduced in the following years. Interest expense related to debt outstanding did not vary dramatically, remaining in the range of 259 to 388 million USD. The gain on the early retirement of debt in 2021 (30 million USD) provided a minor positive impact. Interest income fluctuated but remained relatively modest in size.
Net Earnings
Net earnings attributable to the company reflected the volatility in operational performance. There was a notable loss in 2019 and 2020, with net earnings falling from a positive 3,064 million USD in 2018 to negative 2,680 million USD in 2020. Recovery was strong in 2021 and 2022, resulting in net earnings of 2,813 million USD and 6,015 million USD respectively. This recovery was supported by higher revenues and operating income. The company reported minor but consistent net earnings attributable to noncontrolling interests, which slightly increased losses over time.
Other Items
There were periodic other expenses and income items affecting profitability but these were generally small in magnitude relative to total revenues and expenses. Noteworthy is the estimated future obligation under a performance guarantee appearing in 2021 and significantly rising in 2022, possibly impacting liabilities in those years. A Ukraine charitable pledge of 20 million USD was recorded in 2022. Asset retirement obligation accretion remained relatively stable throughout the period.
Overall Assessment
The company experienced pronounced effects from market or operational challenges during the 2019-2020 period, including significant impairments and decreased demand, which led to steep declines in revenue, gross profit, and net earnings. Post-2020, the data indicate a strong operational and financial recovery, with revenues and earnings surpassing prior peaks by 2022. Cost management and reductions in impairments contributed to improved profitability. The fluctuating non-operating items and financing costs had minor impacts compared to the overarching trends in core operations.