The latest quarterly earnings report for ConocoPhillips (NYSE:COP) seems a bit ho-hum: profits are flat and it has declining assets. But look closer and you see that while earnings were down in just about every international segment, as well as Alaska, the company's earnings in the U.S. lower 48 and Canada increased 15%, which is more than double the year-ago period.

In this video, Fool contributor Tyler Crowe and energy and materials analyst Joel South talk about what this ConocoPhillips' news means for Devon Energy (NYSE:DVN), which releases its earnings report on Wednesday. While 26% of ConocoPhillips' production is natural gas, the amount jumps to 45% for Devon. With a good position in Alberta, Canada, which produces heavy oil, and a tremendous balance sheet, Joel thinks Devon will surprise many people.

3 stock picks to ride America's energy bonanza
Record oil and natural gas production is revolutionizing the United States' energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry will pad your investment nest egg. For this reason, the Motley Fool is offering a look at three energy companies using a small IRS "loophole" to help line investor pockets. Learn this strategy, and the energy companies taking advantage, in our special report "The IRS Is Daring You To Make This Energy Investment." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free. 

Video segment starts at 3:44

Joel South has no position in any stocks mentioned. Tyler Crowe has no position in any stocks mentioned. The Motley Fool owns shares of Devon Energy. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.