Devon Energy (DVN) Q1 2026 earnings summary

Executive summary

• Achieved 387,000 barrels of oil per day in Q1 2026, at the top end of guidance, with $816 million in free cash flow.

• Capital investment was $848 million, 6% below midpoint guidance due to disciplined cost management.

• Generated $1.7 billion in operating cash flow in Q1 2026.

• Approaching completion of $1 billion business optimization ahead of schedule, with full benefits expected post-merger.

• Shareholders approved merger with Coterra Energy, expected to close around May 7, 2026.

Financial highlights

• Q1 2026 oil production reached 387 MBOD, exceeding midpoint guidance by 3 MBOD.

• Free cash flow for Q1 2026 totaled $816 million.

• Reported net earnings of $120 million ($0.19 per diluted share) and core earnings of $641 million ($1.04 per diluted share) in Q1 2026.

• Ended Q1 with $1.8 billion in cash, $3.0 billion undrawn credit facility, and $8.4 billion in outstanding debt.

• Liquidity at quarter-end was $4.8 billion, with net debt-to-EBITDAX of 0.9x.

Outlook and guidance

• Q2 2026 oil volumes expected at 389–395 MBOD; total production at 851–868 MBOED.

• Q2 2026 capital spending guidance is $875–$925 million.

• Free cash flow yield projected at 24% annualized for Q2 2026.

• Combined full-year guidance for the merged entity to be provided mid-June 2026.