Devon Energy (DVN)
NYSE:DVN
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Devon Energy
(NYSE:DVN)
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Rating:75Outperform
Price Target:
$55.00
â–²(15.09% Upside)
Action:ReiteratedDate:04/03/26
Overall score reflects strong recent execution and upbeat earnings-call outlook (robust free cash flow, shareholder returns, and reiterated 2026 guidance), supported by positive technical momentum. Offsetting this is meaningful commodity-cycle sensitivity and uneven free cash flow history, while valuation is supportive but not a standout catalyst on its own.
Positive Factors
Free Cash Flow & Returns
Sustained multi-billion-dollar free cash generation in 2025 underpins durable capital allocation flexibility: enables consistent dividends, buybacks and debt reduction, strengthens the balance sheet, and creates room to fund growth or weather cyclical downcycles without forcing asset sales.
Negative Factors
Commodity Cyclicality
As an upstream hydrocarbon producer, Devon's revenue and margins are inherently tied to volatile commodity prices. This structural exposure drives large swings in earnings and free cash flow across cycles, complicating multi‑year planning and increasing downside risk in prolonged price downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow & Returns
Sustained multi-billion-dollar free cash generation in 2025 underpins durable capital allocation flexibility: enables consistent dividends, buybacks and debt reduction, strengthens the balance sheet, and creates room to fund growth or weather cyclical downcycles without forcing asset sales.
Read all positive factors
Devon Energy (DVN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$29.70B
Dividend Yield2.64%
Average Volume (3M)17.24M
Price to Earnings (P/E)10.1
Beta (1Y)0.38
Revenue Growth11.14%
EPS Growth-21.32%
CountryUS
Employees2,300
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.82
Shares Outstanding621,440,300
10 Day Avg. Volume12,987,410
30 Day Avg. Volume17,239,405
Financial Highlights & Ratios
PEG Ratio-1.11
Price to Book (P/B)1.48
Price to Sales (P/S)1.34
P/FCF Ratio7.38
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue2.23
Enterprise Value/Gross Profit9.83
Enterprise Value/Ebitda5.03
Forecast
1Y Price Target
$55.00Price Target Upside15.09% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering19
EPS Forecast (FY)4.77
Revenue Forecast (FY)$21.13B
Devon Energy Business Overview & Revenue Model
Company Description
Devon Energy Corporation, an independent energy company, primarily engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. It operates approximately 5,134 gross wells. Devon Energy...
How the Company Makes Money
Devon Energy makes money primarily by producing and selling hydrocarbons—crude oil, natural gas, and NGLs—from its operated and non-operated wells. Revenue is largely generated through: (1) commodity sales: the sale of produced oil, gas, and NGLs ...
Devon Energy Key Performance Indicators (KPIs)
Any
Revenue by Segment
Highlights earnings from different business areas, indicating which segments drive growth and profitability for Devon Energy.
Highlights earnings from different business areas, indicating which segments drive growth and profitability for Devon Energy.
Data provided by:
The Fly
The FlyDevon Energy Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational and financial results (Q4 free cash flow of $700M; FY2025 free cash flow $3.1B), significant progress on a $1B business optimization target (85% captured), industry-leading well productivity and capital efficiency, and a transformational merger expected to drive $1B of synergies and enhanced shareholder returns (dividend increase and >$5B repurchase authorization anticipated). Near-term headwinds include weather-related downtime and some Q1 OpEx/workover activity, timing-driven variability in quarter-to-quarter production, and the typical uncertainties around a pending merger and long-dated exploration initiatives. Overall, positives (robust cash generation, cost and capital execution, reserve replacement, and clear synergy plans) materially outweigh the limited operational and timing challenges.Positive Updates
Merger with Coterra and Synergy Target
Announced merger with Coterra Energy expected to deliver $1.0 billion in annual pretax run-rate synergies by year-end 2027 (incremental to current business optimization savings); merger positioned to materially enhance free cash flow and enable accelerated capital returns.
Negative Updates
Weather-Related Downtime Impacting Q1
Guided Q1 2026 production (~830,000 BOE/day) reflects approximately 10,000 BOE/day of weather-related downtime in January, creating a near-term production headwind.
Read all updates
Q4-2025 Updates
Positive
Negative
Merger with Coterra and Synergy Target
Announced merger with Coterra Energy expected to deliver $1.0 billion in annual pretax run-rate synergies by year-end 2027 (incremental to current business optimization savings); merger positioned to materially enhance free cash flow and enable accelerated capital returns.
Read all positive updates
Company Guidance
Devon guided Q1 2026 production of roughly 830,000 BOE/d (including ~10,000 BOE/d of January weather-related downtime), reiterated unchanged full‑year 2026 guidance, and plans ~ $3.5 billion upstream capital for 2026; Q4 free cash flow was $700 million and FY‑2025 free cash flow was $3.1 billion, with $2.2 billion returned to shareholders, cash of $1.4 billion and net debt/EBITDA <1.0x, ~5% fewer shares outstanding, and capital spending finishing 4% better than guidance. Operational/reserve metrics include a 193% 2025 reserve replacement rate at an F&D cost just over $6/BOE, base production outperformance of ~5,000 bbl/d in 2025, base decline in the mid‑30% range, downtime reduced to inside ~5% (from ~7%), well productivity >20% above peer average, capital efficiency ~13% better than industry and >15% improved vs preliminary outlook. The business‑optimization program has captured 85% of a $1.0 billion pretax target with >100 workstreams and the company expects the remaining savings in 2026; the pending Coterra merger targets $1.0 billion of annual pretax run‑rate synergies by year‑end 2027, a $50 million annual interest saving from a Q3 term‑loan repayment, a proposed dividend raise from $0.24 to ~$0.315 per quarter (≈31%) pending close/board approval, and a pro forma share‑repurchase authorization of >$5 billion.Devon Energy Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
71
Positive
Cash Flow
66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 17.13B | 15.57B | 15.14B | 19.83B | 13.75B |
| Gross Profit | 4.23B | 4.27B | 5.20B | 8.97B | 5.21B |
| EBITDA | 7.42B | 7.43B | 7.57B | 10.38B | 5.42B |
| Net Income | 2.64B | 2.89B | 3.75B | 6.01B | 2.78B |
Balance Sheet | |||||
| Total Assets | 31.60B | 30.49B | 24.49B | 23.72B | 21.02B |
| Cash, Cash Equivalents and Short-Term Investments | 1.43B | 846.00M | 875.00M | 1.45B | 2.10B |
| Total Debt | 8.78B | 9.20B | 6.45B | 6.70B | 6.73B |
| Total Liabilities | 16.07B | 15.79B | 12.27B | 12.43B | 11.63B |
| Stockholders Equity | 15.53B | 14.50B | 12.06B | 11.17B | 9.26B |
Cash Flow | |||||
| Free Cash Flow | 3.12B | -853.00M | 2.60B | 3.40B | 2.89B |
| Operating Cash Flow | 6.71B | 6.60B | 6.54B | 8.53B | 4.90B |
| Investing Cash Flow | -3.39B | -7.33B | -3.94B | -5.12B | -1.57B |
| Financing Cash Flow | -2.73B | 706.00M | -3.18B | -4.21B | -3.29B |
Devon Energy Technical Analysis
Neutral
47.79
Price Trends
45.64
Positive
41.04
Positive
37.13
Positive
Market Momentum
0.97
Positive
49.98
Neutral
36.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DVN, the sentiment is Neutral. The current price of 47.79 is below the 20-day moving average (MA) of 49.08, above the 50-day MA of 45.64, and above the 200-day MA of 37.13, indicating a neutral trend. The MACD of 0.97 indicates Positive momentum. The RSI at 49.98 is Neutral, neither overbought nor oversold. The STOCH value of 36.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DVN.
Devon Energy Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $25.37B | 11.67 | 11.77% | 3.39% | 26.13% | 31.42% | |
77 Outperform | $149.80B | 14.67 | 12.28% | 3.43% | 8.41% | -16.12% | |
77 Outperform | $36.67B | 16.42 | 9.16% | 1.17% | 64.84% | 219.47% | |
76 Outperform | $52.94B | 26.12 | 4.34% | 2.70% | 60.29% | -17.62% | |
75 Outperform | $29.70B | 10.12 | 17.47% | 2.64% | 11.14% | -21.32% | |
73 Outperform | $57.17B | 16.93 | 6.43% | 2.39% | -2.48% | -65.26% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
DVN
Devon Energy
47.79
19.79
70.65%
CTRA
Coterra Energy
33.41
9.03
37.02%
COP
Conocophillips
122.55
38.96
46.62%
EQT
EQT
58.68
9.30
18.82%
OXY
Occidental Petroleum
57.97
20.87
56.27%
FANG
Diamondback
188.21
63.96
51.47%
Devon Energy Corporate Events
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Devon Energy Clears Antitrust Hurdle in Coterra Merger
Positive
Apr 2, 2026
Devon Energy said that on February 1, 2026 it entered into a merger agreement under which its wholly owned subsidiary will merge with Coterra Energy Inc., leaving Coterra as a wholly owned subsidiary of Devon. The deal is expected to strengthen De...
Business Operations and StrategyPrivate Placements and Financing
Devon Energy Extends Revolving Credit Facility Maturity
Positive
Mar 24, 2026
On March 24, 2026, Devon Energy Corporation amended its existing revolving credit facility, extending the maturity by one year from March 24, 2030 to March 24, 2031 and renewing its option to seek up to three additional one-year extensions, subjec...
Business Operations and StrategyExecutive/Board ChangesM&A Transactions
Devon Energy Announces All-Stock Merger with Coterra
Positive
Feb 2, 2026
On February 1, 2026, Devon Energy signed a definitive all-stock agreement to acquire Coterra Energy through a merger in which Coterra shareholders will receive 0.70 Devon shares for each Coterra share, leaving Devon and Coterra investors owning ro...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.