Devon Energy misses by $0.23; to pursue separation of Canadian and Barnett Shale assets, adds to repurchase authorization, boosts dividend
- Reports Q4 (Dec) earnings of $0.10 per share, excluding non-recurring items, $0.23 worse than the S&P Capital IQ Consensus of $0.33.
- Overall, Devon's reported net production averaged 532,000 Boe per day during the fourth quarter of 2018, exceeding midpoint guidance by 3,000 Boe per day. Of this total, oil production accounted for the largest component of the product mix at 47 percent of total volumes.
- Devon announced that its board of directors has authorized the company to pursue the separation of its Canadian and Barnett Shale assets to complete the transformation to a high-return U.S. oil growth business. The company will evaluate multiple methods of separating the assets, including a potential sale or spin-off. The separation will allow Devon to focus on its top-tier, high-return U.S. oil assets and is aligned with the company's previously announced long-term strategic plan.
- Devon also announced today that its board of directors authorized a $1 billion increase to the company's previously announced $4 billion share-repurchase program, bringing the total repurchase program to $5 billion.
- Additionally, the company's board of directors approved a 13 percent increase in its quarterly common stock dividend beginning in the second quarter of 2019. The new quarterly dividend rate will be $0.09 per share, compared to the prior quarterly dividend of $0.08 per share.