Devon Energy (DVN) AI Stock Analysis

• Market Cap: $20.17B
• Dividend Yield: 3.87%
• Average Volume (3M): 7.60M
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.67
• Revenue Growth: 12.06%
• EPS Growth: -16.37%
• Country: US
• Employees: 2,300
• Sector: Energy
• Sector Strength: 46
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 1.21
• Shares Outstanding: 642,100,000
• 10 Day Avg. Volume: 7,838,183
• 30 Day Avg. Volume: 7,599,680
• PEG Ratio: -0.55
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -28.71
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $41.63
• Price Target Upside: 28.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20

• Rating: 73 Outperform
• Price Target: $36.00 ▲(11.49%Upside)

Devon Energy's overall score is driven by strong financial and operational performance, as evidenced by solid earnings and efficient capital management. The valuation metrics are favorable, indicating potential undervaluation. However, technical indicators suggest a cautious outlook, and liquidity concerns due to high capital expenditures should be monitored.

Positive Factors

Business Optimization

Devon Energy introduced a business optimization plan that will save $1 billion by the end of 2026 and expects to achieve 40% of the goal this year.

Debt Reduction

Devon Energy sold their stake in Matterhorn Pipeline for $375 million, with proceeds going towards short-term debt reduction.

Oil Production Guidance

The 2Q25 oil production guidance likely surpassed investor expectations, which is reassuring given the uncertainty around the level of lost volumes from the BPX partnership dissolution.

Negative Factors

Commodity Prices

The market would still like to hear a Plan B if commodity prices fall from current levels.

Market Expectations

Despite improvements in guidance and outlook, the update is viewed as mixed relative to market expectations, indicating potential near-term pressure on the stock.

Devon Energy Business Overview & Revenue Model

Company Description

Devon Energy Corporation is an independent energy company engaged in the exploration, development, and production of oil, natural gas, and natural gas liquids (NGLs). Based in the United States, the company operates primarily in onshore areas across several major oil and gas basins. Devon Energy is known for its disciplined capital allocation, technological innovation, and commitment to safety and environmental stewardship.

How the Company Makes Money

Devon Energy makes money primarily through the production and sale of oil, natural gas, and NGLs. The company's revenue model revolves around the extraction of these resources from its owned or leased properties, which are then sold in the global commodities markets. Key revenue streams include the sale of crude oil, natural gas, and NGLs. Devon Energy also benefits from strategic partnerships and joint ventures that enhance its operational capabilities and market reach. The company's earnings are significantly influenced by commodity prices, production volumes, and operational efficiencies. Additionally, Devon Energy employs hedging strategies to manage price volatility and secure stable cash flows.

Devon Energy Financial Statement Overview

Summary

Devon Energy demonstrates strong revenue growth and operational efficiency with solid EBIT and EBITDA margins. However, a declining net profit margin and increasing leverage from a moderate debt-to-equity ratio present cautionary notes. The company maintains effective cash flow management, supporting investment and operations, but must focus on profitability margins and debt levels for long-term stability.

Income Statement

Devon Energy has demonstrated strong revenue growth over the years, with a notable increase from 2023 to 2024. The company boasts a high gross profit margin, indicative of good production efficiency. However, the net profit margin has seen a decline, suggesting rising costs or other financial pressures. EBIT and EBITDA margins are solid, reflecting operational efficiency despite fluctuating net income.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, which has increased slightly, potentially indicating growing leverage risks. The return on equity is positive, suggesting effective utilization of equity capital. However, the equity ratio indicates a balanced but not overly conservative capital structure, with room for improvement in equity financing.

Cash Flow

Devon Energy has shown consistent free cash flow generation, with a positive growth rate over the recent period. The operating cash flow to net income ratio is strong, indicating effective cash conversion from profits. While the free cash flow to net income ratio is healthy, indicating good cash management, ongoing capital expenditures may affect future cash flows.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
15.94B	15.14B	19.17B	12.21B	4.83B
	Gross Profit
15.94B	5.20B	8.37B	3.68B	392.00M
	EBIT
10.70B	2.34B	8.07B	3.31B	-90.00M
	EBITDA
7.37B	7.57B	10.38B	5.42B	-1.36B
	Net Income Common Stockholders
2.89B	3.75B	6.01B	2.81B	-2.54B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
846.00M	875.00M	1.45B	2.27B	2.24B
	Total Assets
30.49B	24.49B	23.72B	21.02B	9.91B
	Total Debt
9.20B	6.48B	6.70B	6.73B	4.54B
	Net Debt
8.36B	5.58B	5.24B	4.46B	2.31B
	Total Liabilities
15.79B	12.27B	12.43B	11.63B	6.89B
	Stockholders Equity
14.50B	12.06B	11.17B	9.26B	2.88B
Cash Flow		Free Cash Flow
2.96B	2.60B	3.40B	2.89B	193.00M
	Operating Cash Flow
6.60B	6.54B	8.53B	4.90B	1.35B
	Investing Cash Flow
-7.33B	-3.94B	-5.12B	-1.57B	-646.00M
	Financing Cash Flow
706.00M	-3.18B	-4.21B	-3.29B	-306.00M

Devon Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.29
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DVN, the sentiment is Positive. The current price of 32.29 is above the 20-day moving average (MA) of 32.08, above the 50-day MA of 31.68, and below the 200-day MA of 35.78, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 53.68 is Neutral, neither overbought nor oversold. The STOCH value of 67.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DVN.

Devon Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WDS	78 Outperform	$28.27B	7.98	10.23%	7.84%	-0.93%	115.30%
EC	77 Outperform	$18.43B	5.44	18.64%	11.05%	-2.26%	-20.04%
CTRA	77 Outperform	$18.95B	14.49	9.40%	3.36%	10.33%	-0.13%
DVN	73 Outperform	$20.17B	7.15	20.88%	3.87%	12.06%	-16.37%
HAL	73 Outperform	$17.64B	8.60	20.99%	3.31%	-2.54%	-17.53%
VLO	70 Neutral	$39.74B	44.73	3.73%	3.43%	-8.44%	-85.95%
Sector *	57 Neutral	$7.22B	3.16	-4.49%	5.63%	0.82%	-49.15%

Devon Energy Corporate Events

Devon Energy Elects Board at Annual Meeting

At Devon Energy‘s Annual Meeting of Stockholders on June 4, 2025, all ten nominees for the Board were elected for a one-year term. Additionally, the appointment of KPMG LLP as the independent auditor for 2025 was ratified, and the advisory vote on executive compensation was approved. However, a stockholder proposal to change the holding requirement for calling a special meeting was not approved.

The most recent analyst rating on (DVN) stock is a Hold with a $40.00 price target. To see the full list of analyst forecasts on Devon Energy stock, see the DVN Stock Forecast page.