Devon Energy reported $1 billion in third-quarter net income and plans more than $1 billion in fourth-quarter share repurchases, a sharp increase from the prior quarter as it adjusts plans following a merger.
Net income came to 88 cents per diluted share. Devon’s core earnings, a non-GAAP measure, were $1.6 billion, or $1.42 per diluted share. Cash from operations totaled $2.8 billion, and adjusted free cash flow was $2 billion. This was the first quarter in which the company’s combined operations were reflected across the full reporting period.
Planned fourth-quarter repurchases of more than $1 billion compare with $414 million in the third quarter. Devon also expects to retire another $1.5 billion in long-term debt, with a gross-debt goal of $9 billion in early 2027. The company expects its planned Eagle Ford sale to generate about $3.5 billion after taxes and effective-date adjustments. It says it will use the proceeds to accelerate share repurchases and reduce debt.
Devon raised its projected annualized pre-tax synergy run rate for year-end 2026 to about $350 million. In August, it had outlined a $200 million exit rate. Devon said integration work is running ahead of plan, citing capital optimization, improved operating margins and lower corporate costs. It expects average synergies of about $700 million in 2027 and an annualized pre-tax synergy run rate of at least $1 billion by year-end 2027.
Devon expects the Eagle Ford sale to close in early 2027, subject to regulatory approvals and customary closing conditions. Reflecting the planned transaction, Devon’s initial 2027 outlook puts oil production at about 525,000 barrels per day and total production at 1.6 million barrels of oil equivalent per day. The company expects total capital of about $5.3 billion. Devon expects to issue full 2027 guidance alongside its fourth-quarter results in February.
The company scheduled a conference call on its third-quarter results for Nov. 6, 2026, at 11 a.m. ET.
