Devon Energy (DVN) is likely to report Q1 production at the top end of its guidance, with the potential for an upside to its outlook for the year, UBS said in a note emailed Monday.
The firm said it expects Q1 production of 825,000 barrels of oil equivalent per day, at the top of the company's 805,000 to 825,000 guidance. UBS expects oil volumes to be 386,000 barrels per day, also at the high end of the company's guidance.
UBS is also forecasting $2.83 in cash flow per share, versus the consensus of $2.82.
"We see [Devon's] strong 2024 operational performance continuing into 2025," UBS said.
Furthermore, UBS said recently appointed Chief Executive Clay Gaspar could highlight opportunities for margin expansion and a continued focus on value when considering mergers and acquisitions and buybacks.
"We see both as positive, and believe it comes at the right time as the decline in crude oil prices reduces our FY25/26 cash flow estimates," UBS said.
UBS kept its neutral rating on the stock and a price target of $35.
Price: 29.20, Change: -1.11, Percent Change: -3.67
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