Devon Energy (DVN) has increased its fixed quarterly dividend by 60% after reporting better-than-expected financial results.
The Oklahoma-based oil and natural gas company announced that it is raising its quarterly fixed dividend to $0.24 U.S., a 60% increase from $0.15 U.S. previously.
Devon Energy pays both a fixed and variable or fluctuating dividend to its stockholders.
The variable dividend is based on the company’s financial performance and issued at management’s discretion.
The new fixed dividend will boost Devon Energy’s quarterly yield to about 5%. The company has paid a dividend every year since 1993.
Management said they returned a total of $444 million U.S. to shareholders through dividends and stock buybacks during the fourth quarter of last year.
The company ended 2024 with cash on hand of $846 million U.S.
The dividend increase was announced along with strong fourth-quarter 2024 financial results that beat Wall Street forecasts on the top and bottom lines.
Devon Energy reported earnings per share (EPS) of $1.16 U.S., which beat the consensus estimate of $1 U.S.
Revenue in the quarter totaled $4.40 billion U.S., which was better than the $4.17 billion U.S. expected on Wall Street.
Devon Energy said that its oil production reached 398,000 barrels a day during Q4 2024, about 3% ahead of the company’s guidance.
Looking ahead, Devon Energy said that it expects oil production to average 380,000 to 386,000 barrels per day in the current first quarter of 2025.
The company anticipates first-quarter capital expenditures of about $1 billion U.S.
Devon Energy’s stock has declined 20% over the last 12 months to trade at $34.88 U.S. a share.
