Devon Energy Reports $917 Million Net Earnings for Q2 2025, Up from $855 Million Last Year

Devon Energy Corporation reported a net earnings increase to $917 million for the second quarter of 2025, up from $855 million in the same period last year. This translates to earnings per diluted share of $1.41, compared to $1.34 in the prior year. Total revenues for the quarter reached $4.284 billion, a 9.3% increase from $3.917 billion in the second quarter of 2024. The company's oil, gas, and natural gas liquids (NGL) sales contributed $2.710 billion, slightly down from $2.796 billion year-over-year, while marketing and midstream revenues rose to $1.338 billion from $1.098 billion.

In terms of operational performance, Devon's production averaged 841 MBoe/d, exceeding guidance by 3%. The company noted a significant increase in production volumes, particularly in the Delaware Basin, which saw a 9% rise. However, realized prices for oil, gas, and NGLs decreased, contributing to a $494 million decline in earnings due to lower WTI and Henry Hub index prices. The company’s total expenses for the quarter were $3.123 billion, up from $2.877 billion in the previous year, primarily driven by increased production and marketing expenses.

Strategically, Devon completed the acquisition of the Williston Basin business from Grayson Mill in September 2024 for approximately $5 billion, which has enhanced its operational scale and production capabilities. The company also divested its investment in Matterhorn for $372 million, realizing a pre-tax gain of $307 million. Additionally, Devon has been actively repurchasing shares, completing approximately 78% of its $5 billion share repurchase program, with around 85.4 million shares bought back for approximately $3.9 billion.

Devon’s balance sheet reflects total assets of $31.390 billion as of June 30, 2025, an increase from $30.489 billion at the end of 2024. The company reported $1.759 billion in cash and cash equivalents, significantly up from $846 million at the end of the previous year. Devon's long-term debt stood at $8.393 billion, slightly down from $8.398 billion. The company remains committed to returning value to shareholders through dividends and share repurchases, having declared a fixed cash dividend of $0.24 per share for the third quarter of 2025.

Looking ahead, Devon anticipates continued volatility in commodity prices due to geopolitical events and economic uncertainties. The company is focused on maintaining capital discipline and maximizing free cash flow, with a business optimization plan expected to improve annual pre-tax cash flow by $1 billion by the end of 2026. Devon's strategic priorities include moderating production growth, emphasizing operational efficiencies, and delivering cash returns to shareholders while navigating the challenges posed by fluctuating market conditions.