Devon Energy (DVN) reported net income of $1.0 billion in the third quarter of 2026, or $0.88 per diluted share (EPS). Adjusted earnings (non-GAAP, which excludes items that analysts typically disregard) were $1.6 billion, or $1.42 per share. In 2Q26, net income had been $1.9 billion, or $2.03 per share.
Total revenue came to $6.9 billion in the quarter, with oil, gas and natural gas liquids (NGL) sales of $5.9 billion. Operating cash flow was $2.8 billion and adjusted free cash flow (non-GAAP) was $2.0 billion. Average production was 1,668,000 barrels of oil equivalent (Boe) per day, of which 553,000 barrels per day were oil. It was the first full quarter of combined operations following the merger with Coterra.
The company returned $1.53 billion to shareholders in the quarter: $366 million in dividends ($0.32 per share), $414 million in repurchases of 8.9 million shares, and the payoff of the remaining $750 million of a term loan. Debt reduction since the merger reached $1.25 billion. Total debt was $10.6 billion and net debt was $10.2 billion, equivalent to 0.9 times trailing 12-month EBITDAX (earnings before interest, taxes, depreciation, amortization and exploration).
The board declared a fixed quarterly dividend of $0.32 per share, payable on December 30, 2026 to shareholders of record on December 15, 2026. The buyback is expected to exceed $1 billion in 4Q26. There is still $7.4 billion remaining of the $8.0 billion program, valid through mid-2029. Devon agreed to sell its Eagle Ford assets for $4.2 billion in cash, with closing expected in early 2027 and net proceeds of about $3.5 billion for buybacks and debt reduction. The company also raised its estimate of merger synergies to about $350 million annually by the end of 2026.
Devon maintained its 2026 guidance. For 4Q26, it expects production of 1,660,000 to 1,700,000 Boe per day and capital expenditures of $1,290 million to $1,395 million. For 2027, it projects about 525,000 barrels per day of oil and capital expenditures of about $5.3 billion, excluding Eagle Ford. The full 2027 guidance will be released in February.
