Switch to:
Devon Energy Corp (NYSE:DVN)
Cash Flow from Investing
\$-2,996 Mil (TTM As of Sep. 2016)

Cash Flow from Investing covers the cash a company gains or spends from investment activities in financial market and operating subsidiaries. It also includes the cash the company used for property, plant and equipment (PPE).

For the three months ended in Sep. 2016, Devon Energy Corp spent \$3 Mil on purchasing property, plant, equipment. It gained \$1,680 Mil from selling property, plant, and equipment. It spent \$0 Mil on purchasing business. It gained \$0 Mil from selling business. It spent \$0 Mil on purchasing investments. It gained \$0 Mil from selling investments. It paid \$0 Mil for net Intangibles purchase and sale. It paid \$0 Mil for discontinued investing activities. And it paid \$387 Mil for other investing activities. In all, Devon Energy Corp gained \$1,290 Mil on investment activities in financial market and operating subsidiaries for the three months ended in Sep. 2016.

Definition

Cash Flow from Investing covers the cash a company gains or spends from investment activities in financial market and operating subsidiaries. It also includes the cash the company used for property, plant and equipment (PPE).

If a company spends cash on property, plant and equipment (PPE), this will reduce their cash position. This is called Capital Expenditures (CPEX).

Likewise, if a company buys another company for cash, this will reduce their cash position.

Devon Energy Corp's Cash Flow from Investing for the fiscal year that ended in Dec. 2015 is calculated as:

 Cash Flow from Investing (A: Dec. 2015 ) = Purchase of PPE + Sale of PPE + Purchase of Business = -1107 + 107 + 0 + Sale of Business + Purchase of Investment + Sale of Investment + 0 + 0 + 0 + Net Intangibles Purchase And Sale + Cash From Discontinued Investing + Cash From Other Investing + 0 + 0 + -5324 = -6,324

Devon Energy Corp's Cash Flow from Investing for the quarter that ended in Sep. 2016 is calculated as:

 Cash Flow from Investing (Q: Sep. 2016 ) = Purchase of PPE + Sale of PPE + Purchase of Business = -3 + 1680 + 0 + Sale of Business + Purchase of Investment + Sale of Investment + 0 + 0 + 0 + Net Intangibles Purchase And Sale + Cash From Discontinued Investing + Cash From Other Investing + 0 + 0 + -387 = 1,290

Devon Energy Corp Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2016 was -1592 (Dec. 2015 ) + -2359 (Mar. 2016 ) + -335 (Jun. 2016 ) + 1290 (Sep. 2016 ) = \$-2,996 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Explanation

Cash flow from investing contains nine items:

1. Purchase Of Property, Plant, Equipment:
Purchase of PPE indicates the amount used to purchase property, plant, and equipment.

Devon Energy Corp's purchase of property, plant, equipment for the three months ended in Sep. 2016 was \$-3 Mil. It means Devon Energy Corp spent \$3 Mil on purchasing property, plant, equipment.

In the capital spending for property, plant and equipment (PPE), some part of spending may be from the expansion of business. The business needs more property, plant and equipment (PPE) as it grows. Another part may be from replacement of the property, plant and equipment (PPE) of existing business. For some companies, the cash spent on replacing of the property, plant and equipment (PPE) of the existing business will be close to the depreciation of property, plant and equipment (PPE) reported in the income statement.

In Warren Buffetts definition of Owners Earnings, he deducts the estimate of the cost of replacing the property, plant and equipment (PPE) of the existing business from cash flow from operations. The cash spent on the new property, plant, and equipment is not deducted. The reason is because these are not costs of the existing business. In his 1986 letter to shareholders, Warren Buffett wrote this about owner earnings:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume....Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

2. Sale Of Property, Plant, Equipment:
Sale of PPE indicates the amount gained from selling property, plant, and equipment.

Devon Energy Corp's sale of property, plant, equipment for the three months ended in Sep. 2016 was \$1,680 Mil. It means Devon Energy Corp gained \$1,680 Mil from selling property, plant, and equipment.

Devon Energy Corp's purchase of business for the three months ended in Sep. 2016 was \$0 Mil. It means Devon Energy Corp spent \$0 Mil on purchasing business.

Devon Energy Corp's sale of business for the three months ended in Sep. 2016 was \$0 Mil. It means Devon Energy Corp gained \$0 Mil from selling business.

5. Purchase Of Investment:
Purchase of Investments represents cash outflow on the purchase of investments in securities.

Devon Energy Corp's purchase of investment for the three months ended in Sep. 2016 was \$0 Mil. It means Devon Energy Corp spent \$0 Mil on purchasing investments.

6. Sale Of Investment:
Sale of Investments represents cash inflow on the sale of investments in securities.

Devon Energy Corp's sale of investment for the three months ended in Sep. 2016 was \$0 Mil. It means Devon Energy Corp gained \$0 Mil from selling investments.

7. Net Intangibles Purchase And Sale:
Net Intangibles purchase and sale means the net cash inflow received by a company that comes from the purchase and sale of intangibles. It equals the cash received from sale of intangibles minus the cash spent on purchasing intangibles.

Devon Energy Corp's net Intangibles purchase and sale for the three months ended in Sep. 2016 was \$0 Mil. It means Devon Energy Corp paid \$0 Mil for net Intangibles purchase and sale.

8. Cash From Discontinued Investing Activities:
Cash from discontinued investing activities means the cash received by a company that comes from the discontinued investing activities.

Devon Energy Corp's cash from discontinued investing activities for the three months ended in Sep. 2016 was \$0 Mil. It means Devon Energy Corp paid \$0 Mil for discontinued investing activities.

9. Cash From Other Investing Activities:
Cash from other investing activities means the cash received by a company that comes from other investing activities.

Devon Energy Corp's cash from other investing activities for the three months ended in Sep. 2016 was \$-387 Mil. It means Devon Energy Corp paid \$387 Mil for other investing activities.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Devon Energy Corp Annual Data

 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 PurchaseOfPPE -7,346 -6,158 -9,375 -4,879 -6,476 -7,534 -8,225 -256 -6,462 -1,107 SaleOfPPE 40 76 117 34 4,310 129 1,468 419 5,120 107 PurchaseOfBusiness 0 0 0 0 0 0 0 0 0 0 SaleOfBusiness 0 0 0 0 0 0 0 0 0 0 PurchaseOfInvestment -2,395 -934 -50 0 -145 -6,691 -4,106 -1,076 0 0 SaleOfInvestment 2,501 1,136 300 7 0 5,333 3,266 3,419 57 0 NetIntangiblesPurchaseAndSale 0 0 0 0 0 0 0 0 0 0 CashFromDiscontinuedInvestingActivities -249 166 1,855 -499 2,197 3,146 57 0 0 0 CashFromOtherInvestingActivities 0 0 280 -17 2 -29 14 -6,505 -6,899 -5,324 Cash Flow from Investing -7,449 -5,714 -6,873 -5,354 -112 -5,646 -7,526 -3,999 -8,184 -6,324

Devon Energy Corp Quarterly Data

 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 PurchaseOfPPE -289 -31 -207 -404 -13 -113 -577 -1,627 -11 -3 SaleOfPPE 2,800 2,260 -82 2 6 27 72 18 191 1,680 PurchaseOfBusiness 0 0 0 0 0 0 0 0 0 0 SaleOfBusiness 0 0 0 0 0 0 0 0 0 0 PurchaseOfInvestment 0 0 0 0 0 0 0 0 0 0 SaleOfInvestment 0 0 0 0 0 0 0 0 0 0 NetIntangiblesPurchaseAndSale 0 0 0 0 0 0 0 0 0 0 CashFromDiscontinuedInvestingActivities 0 0 0 0 0 0 0 0 0 0 CashFromOtherInvestingActivities -1,711 -1,669 -1,973 -1,714 -1,440 -1,083 -1,087 -750 -515 -387 Cash Flow from Investing 800 560 -2,262 -2,116 -1,447 -1,169 -1,592 -2,359 -335 1,290
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to \$400 per referral. ( Learn More)