The miss and steep revenue decline are negative, but the stock may be cushioned by strong FCF and the transformative Coterra merger closing imminently. Watch for post-merger synergies and capital returns guidance in mid-June; near-term volatility likely as market digests weak standalone results vs merger upside.
Price Chart
Executive Summary
Devon Energy reported Q1 2026 core earnings of $1.04 per share, missing consensus of $1.10 by 5.5%, with total revenue falling 14.5% YoY to $3.81B due to lower commodity prices and a $701M derivative loss. Despite the miss, the company generated $816M in free cash flow, executed on its $1B business optimization target, and received shareholder approval for the Coterra merger, expected to close by May 7.
Key Financial Metrics
Key Facts
- Q1 2026 core EPS of $1.04 vs consensus $1.10 (miss of 5.5%)
- Q1 2026 total revenue of $3.81B vs consensus $3.93B (miss of 3.1%)
- Revenue declined 14.5% YoY from $4.45B in Q1 2025
- GAAP diluted EPS collapsed to $0.19 from $0.77 YoY due to $701M derivative loss
- Operating cash flow of $1.66B and free cash flow of $816M
- Share repurchases of $69M in Q1; suspended pending merger closing
- Coterra merger approved by both companies' shareholders, expected to close May 7
- Q2 standalone guidance issued: production 851-868 MBoe/d, capex ~$900M; full-year guidance delayed until mid-June post-merger
Financial Impact
EPS miss of 5.5%, revenue miss of 3.1%, revenue decline of 14.5% YoY
Risk Factors
- Lower commodity prices and derivative losses continue to pressure GAAP earnings
- Merger integration risks and potential dilution from all-stock deal structure
- Shelf registration (S-3ASR) filed in April overhangs possible future equity issuance
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-206689 |
| Document: d947371d8k.htm | 0001193125-26-206689 |
| Document: d947371dex991.htm | 0001193125-26-206689 |
| Document: 0001193125-26-206689-index-headers.html | 0001193125-26-206689 |
| Document: 0001193125-26-206689-index.html | 0001193125-26-206689 |
| Document: 0001193125-26-206689.txt | 0001193125-26-206689 |
| 8-K Data (Synthetic) | 0001193125-26-206689 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 14, 2026 18d ago | Insider Cluster | $49.73 $47.59 | ▼ −4.30% | ▼ −5.96% | $46.94 (−5.61%) |
Jul 13, 2026 11w ago | Institutional Cluster | $43.73 $43.83 | ▲ +0.23% | ▲ +1.01% | $46.94 (+7.34%) |
Jun 25, 2026 14w ago | 8-K | $42.21 $40.47 | ▼ −4.12% | ▼ −6.29% | $46.94 (+11.21%) |
Jun 9, 2026 16w ago | Press Release | $46.60 $42.89 | ▼ −7.96% | ▼ −11.39% | $46.94 (+0.73%) |
Jun 5, 2026 16w ago | 8-K | $45.08 $43.53 | ▼ −3.44% | ▼ −5.55% | $46.94 (+4.13%) |
May 22, 2026 18w ago | 8-K | $47.29 $46.31 | ▼ −2.07% | ▼ −3.73% | $46.94 (−0.73%) |
May 21, 2026 19w ago | 8-K | $47.09 $44.50 | ▼ −5.50% | ▼ −7.35% | $46.94 (−0.31%) |
May 21, 2026 19w ago | Press Release | $47.09 $44.50 | ▼ −5.50% | ▼ −7.35% | $46.94 (−0.31%) |
May 15, 2026 19w ago | Insider Cluster | $49.67 $45.14 | ▼ −9.12% | ▼ −10.74% | $46.94 (−5.49%) |
May 15, 2026 19w ago | Insider Cluster | $49.67 $45.14 | ▼ −9.12% | ▼ −10.74% | $46.94 (−5.49%) |
US Market Status
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