Analyst Roger Read from Wells Fargo maintained a Buy rating on Devon Energy and keeping the price target at $42.00.
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Roger Read’s rating is based on Devon Energy’s strategic focus on cost reduction and margin enhancement, which are expected to contribute positively to their financial performance. Despite mixed financial results anticipated for Q2’25, the company is making significant progress in operational efficiency and maintaining a disciplined approach to multi-zone development in the Delaware Basin. This strategy aims to enhance long-term asset value by targeting formations like Bone Spring and Wolfcamp, while also preserving future inventory quality by minimizing well degradation.
Additionally, Devon Energy’s production trajectory shows stability, with oil volumes expected to settle at mid-380s through the end of 2025. Although there are some adjustments in activity, such as a slight decrease in rig count in the Delaware Basin, the company is poised to stabilize production levels across its operations. The anticipated rise in Eagle Ford volumes in the second half of the year further supports a positive outlook. These factors contribute to Roger Read’s confidence in maintaining a Buy rating for Devon Energy with a price target of $42.
According to TipRanks, Read is a 2-star analyst with an average return of 0.1% and a 49.10% success rate. Read covers the Energy sector, focusing on stocks such as Devon Energy, Ovintiv, and EOG Resources.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $37.00 price target.