DVN & CVX: Two energy stocks to watch in 2023

By - Akanksha Vashisht

Summary

  • The energy sector is an important part of an economy as many other sectors are dependent on it.
  • Devon Energy stock pays a quarterly dividend of US$ 0.89.
  • Chevron stock pays a quarterly dividend of US$ 1.51.

The energy sector constitutes many businesses, be it mining, renewable energy or oil and gas. The energy sector is undoubtedly a crucial part of the economy as it powers most of its operations. Additionally, most other sectors in the economy depend on this sector for their seamless operations.

Almost every business or household needs energy daily to keep its functions running. With a visible push towards renewable energy, the global economy has also embraced many alternative energy sources. However, oil and gas producers have a substantial hold across most global markets.

With that, it is time to look at two such energy stocks that operate in the oil and gas industry. Here is a closer look at Devon Energy and Chevron and why you can keep an eye on them:

Devon Energy Corporation

Being one of North America's largest independent exploration and production companies, Devon Energy provides stable and environmentally responsible energy production and its operations are centered onshore in the US.

Devon held reserves of 1.8 billion barrels of oil equivalent at year-end 2022, with a net production of 611 thousand boe/d. Out of the net production, oil and natural gas comprised 73%, and natural gas comprised the remaining proportion. 

On the financial front, Devon reported a total revenue of US$ 4.299 billion during the December 2022 quarter, which was 57.05% higher annually. The net income to common stockholders was reported to be US$ 1.194 billion during the December 2022 quarter. 

© 2023 Krish Capital Pty. Ltd.

The operating cash flow during the December 2022 quarter was US$ 1.91 billion, while the EBITDA during the quarter was US$ 2.271 billion. Devon will be reporting its first quarter 2023 results on Monday, May 8, once US financial markets close. 

Devon Energy pays a quarterly dividend of US$ 0.89. 

Chevron Corporation

Chevron is the second-largest oil company in the United States, with its operations taking place across the globe, including North and South America, Europe and Asia. Chevron has refineries in the US and Asia, where the total refining capacity is 1.8 million barrels of oil in a day.

The company's reserves at year-end 2022 were reported to be 11.2 billion barrels of oil equivalent, which includes 6.1 billion barrels of liquids and 30.9 trillion cubic feet of natural gas. The company has recently ventured into a joint study agreement to develop efficient methods for ammonia transportation. 

© 2023 Krish Capital Pty. Ltd.

Chevron reported a total revenue of US$ 54.523 billion during the December 2022 quarter. The net income to common stockholders during the quarter was US$ 6.3 billion, whereas the EBITDA for the quarter was US$ 14.926 billion. The company’s operating cash flow during the December 2022 quarter stood at US$ 12.49 billion.

Chevron pays a quarterly dividend of US$ 1.51.


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