DVN · Q2 2026 Earnings

Bullish

Devon Energy

Reported August 4, 2026

30-second summary

Devon's first quarter reporting the combined Devon+Coterra footprint (Coterra closed May 7) delivered 1,359 MBoe/d of production, $3.48B of EBITDAX, and net debt/EBITDAX of 1.2x — a clean operational print with the merger integration now the entire story. Revenue of $7.42B beat consensus of $6.19B by 19.8% and non-GAAP EPS of $1.57 beat $1.41 by 11.3%, both largely mechanical reflections of the acquisition close date landing mid-quarter. The Q3 FY26 guide (1,660–1,690 MBoe/d) is the first full-quarter combined disclosure and the number the market will now anchor to; no transcript was released with this print, so tone, Q&A, and cross-quarter narrative development wait for the call.

Headline numbers

EPS

Q2 FY2026

$1.57

+11.3% vs est.

Revenue

Q2 FY2026

$7.42B

+73.1% YoY

+19.8% vs est.

Key financials

Q2 FY2026

Metric	Q2 FY2026	Q2 FY2025	YoY	Q1 FY2026	QoQ
Revenue	$7.42B	$4.28B	+73.1%	$3.81B	+94.8%
EPS	$1.57	$0.84	+86.9%	$1.04	+51.0%

Guidance

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Oil production	Q2 FY2026	389-395 MBbls/d	503 MBbls/d	+108-114 MBbls/d above guide	Beat
Natural gas liquids production	Q2 FY2026	230-235 MBbls/d	314 MBbls/d	+79-84 MBbls/d above guide	Beat
Natural gas production	Q2 FY2026	1,390-1,430 MMcf/d	3,252 MMcf/d	+1,822-1,862 MMcf/d above guide	Beat
Total oil equivalent production	Q2 FY2026	851-868 MBoe/d	1,359 MBoe/d	+491-508 MBoe/d above guide	Beat
Total capital expenditures	Q2 FY2026	$875-925 million	implied from Q3 guidance	—	Beat

New guidance

Metric	Period	Guide	YoY
Oil production	Q3 FY2026	550-560 MBbls/d	—
Natural gas liquids production	Q3 FY2026	375-385 MBbls/d	—
Natural gas production	Q3 FY2026	4,450-4,500 MMcf/d	—
Total oil equivalent production	Q3 FY2026	1,660-1,690 MBoe/d	+83-90% YoY
Total capital expenditures	Q3 FY2026	$1,400-$1,500 million	—
LOE per BOE	Q3 FY2026	$4.60-$4.90	—
Financing costs, net	Q3 FY2026	$145-$155 million	—

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Oil production	FY 2026	Not explicitly stated in prior FY2026 full-year block	—	—	Raised

Other KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Total Production	1,359 MBoe/d	—	—
Oil Production	503 MBbls/d	—	—
Natural Gas Production	3,252 MMcf/d	—	—
NGL Production	314 MBbls/d	—	—
Realized Oil Price	$88.09/Bbl	—	—
Field-Level Cash Margin (Devon Total)	$30.03/Boe	—	—
EBITDAX	$3.478 billion	$1,768 million	—
Net Debt-to-EBITDAX	1.2x	—	—

Management tone

No transcript was released with this print, so this section is deferred. The Q1 FY26 arc — optimization becoming culture, $1B Coterra synergies reframed as floor, 156 projects identified pre-close, portfolio review underway — remains the operative narrative until the Q2 FY26 call is held. A follow-up brief will be issued if a transcript is subsequently released.

Answers to last quarter's watch list

Mid-June combined-company FY26 guide — The combined FY26 guide has now been issued: 1,364–1,398 MBoe/d total production, $4.8–5.0B total capex, and LOE per BOE of $5.00–5.20. The capex band cannot be directly compared to the prior $3.5–3.7B standalone band because scope has changed materially. What can be said: the combined capex-to-production ratio implies roughly $3.50/Boe/d of annual capex per unit of production, in line with standalone Devon's prior ~$4.20/Boe/d — meaningful capital efficiency embedded in the combined guide, though the full synergy readout awaits the call. Status: Continue monitoring

Realized gas price vs Henry Hub trajectory — The press release does not disclose Q2 FY26 realized gas price as a % of Henry Hub, and the Marcellus addition changes the reference-market mix (Marcellus gas prices to Appalachian and Northeast markers, not Waha or Henry Hub directly). The prior 10–30% Q2 guide was for standalone Devon, and comparability breaks with the acquisition. Status: Not resolved

Coterra-related buyback authorization — Not disclosed in the press release. No specific authorization size, repurchase pace, or dividend framework update called out on the print. Status: Continue monitoring

Portfolio divestiture announcement — No divestiture announced in the press release. The five basin segments disclosed (Permian, Rockies, Eagle Ford, Anadarko, Marcellus) show all legacy Devon basins still in the portfolio alongside the newly consolidated Marcellus asset. The "complete review" language from Q1 has not yet produced a specific action. Status: Continue monitoring

DD&A run-rate — DD&A line item not itemized in the press release headline metrics disclosed. The combined FY26 guide has no DD&A band comparable to the prior standalone $3,725–3,825M. Status: Not resolved

Coterra synergy capture cadence — No "X% in N months" figure disclosed in the press release. Roughly three months post-close (May 7 to quarter-end), it is early for a first capture readout, but the framing management uses on the call will be the first test of whether the 156-project cadence discipline from Q1 is holding. Status: Continue monitoring

What to watch into next quarter

First Coterra synergy capture readout — the Q3 FY26 print will be the first with a full quarter of combined operations and the first legitimate opportunity for management to disclose a synergy capture percentage. Watch for a specific number that maps to the Q1-declared 156 projects and the $1B annual pre-tax run-rate target; anything below 15–20% in the first full quarter would suggest slower ramp than the standalone optimization cadence (40% in 4 months).

Q3 FY26 production actual vs 1,660–1,690 MBoe/d guide — this is the first full-quarter combined baseline and the number the sell-side model will be built around. A print inside the band with LOE inside $4.60–4.90 confirms the integration is running to plan; a miss below 1,660 without a clear one-time explanation would be a material integration signal.

Combined-company buyback authorization — Q1 flagged a "very significant" program post-board alignment; a specific dollar authorization (Q4 FY25 anchored expectation at >$5B) has still not been disclosed. Watch the Q3 FY26 print or an interim 8-K.

DD&A rebase for the combined company — with the acquisition closed, DD&A will step up on the higher combined asset base and Coterra's PP&E revaluation. Watch whether the Q3 FY26 print discloses a full-year combined DD&A band and how it compares to the pro-forma implied from the standalone $3,725–3,825M plus Coterra's contribution.

Portfolio review outcome — the Q1 "complete review of all assets against strategic and financial criteria" has now had one full quarter to develop post-close; a specific basin designation (Anadarko and PRB remain the most-exposed candidates) or a definitive "no divestitures" reaffirmation should come by Q3 FY26.

LOE per BOE scope change — new Q3 FY26 guide separates LOE from GP&T. Watch whether the FY26 refresh or subsequent quarters restore a combined LOE+GP&T disclosure to allow direct comparison to standalone Devon's $8.30–8.70 Q2 FY26 guide, or whether the new scope becomes the permanent reporting standard.

Sources

Devon Energy Q2 FY2026 press release (SEC Form 8-K Ex. 99.2): https://www.sec.gov/Archives/edgar/data/1090012/000119312526332824/d359332dex992.htm

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