Devon Energy (DVN) AI Stock Analysis

• Market Cap: $22.47B
• Dividend Yield: 2.91%
• Average Volume (3M): 8.08M
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.55
• Revenue Growth: 11.14%
• EPS Growth: -21.32%
• Country: US
• Employees: 2,300
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 1.04
• Shares Outstanding: 627,300,000
• 10 Day Avg. Volume: 9,338,438
• 30 Day Avg. Volume: 8,080,206
• PEG Ratio: -0.32
• Price to Book (P/B): 1.41
• Price to Sales (P/S): 1.31
• P/FCF Ratio: -23.90
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 1.74
• Enterprise Value/Gross Profit: 7.51
• Enterprise Value/Ebitda: 3.79
• 1Y Price Target: $42.95
• Price Target Upside: 17.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20
• EPS Forecast (FY): 4
• Revenue Forecast (FY): $16.78B

• Rating: 72 Outperform
• Price Target: $36.00 ▼(-1.10% Downside)

Devon Energy's strong earnings call performance and attractive valuation are significant strengths, offsetting some of the financial performance challenges. Technical analysis presents mixed signals, but the company's strategic positioning and operational efficiency support a positive outlook.

Positive Factors

Strong Revenue Growth

The significant revenue growth indicates robust performance in the oil and gas sector, enhancing Devon's market position and financial health.

Free Cash Flow Generation

Strong free cash flow generation allows Devon to invest in growth opportunities, reduce debt, and return capital to shareholders, supporting long-term sustainability.

Debt Reduction

Reducing debt enhances Devon's financial flexibility and lowers interest expenses, contributing to a stronger balance sheet and improved financial stability.

Negative Factors

Declining Profitability Margins

Decreasing margins can impact Devon's ability to sustain profitability, potentially affecting its competitive position and financial performance over time.

Negative Free Cash Flow Growth

Negative free cash flow growth poses liquidity concerns, limiting Devon's capacity to invest in future growth and manage financial obligations effectively.

Challenging Macro Environment

Macro challenges can hinder Devon's operational performance and strategic initiatives, affecting long-term growth prospects and market dynamics.

Devon Energy Business Overview & Revenue Model

Company Description

Devon Energy Corporation is an independent energy company based in the United States, primarily engaged in the exploration, development, and production of oil and natural gas. The company operates in two main segments: the exploration and production of oil and natural gas, with a focus on onshore resources in the U.S. Devon is known for its expertise in shale plays, particularly in the Delaware Basin and the Anadarko Basin. The company aims to create value through strategic asset management, operational efficiency, and sustainable practices in energy production.

How the Company Makes Money

Devon Energy generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids (NGLs). The company sells its production to various customers, including major oil companies and local utilities, primarily through long-term contracts and spot market transactions. Key revenue streams include the pricing of oil and gas, which can fluctuate based on market conditions, regional demand, and geopolitical factors. Additionally, Devon's strategic investments in high-quality assets and its focus on cost management contribute to its profitability. The company also benefits from partnerships and joint ventures that help to enhance its operational capabilities and expand its resource base.

Devon Energy Financial Statement Overview

Summary

Devon Energy demonstrates strong revenue growth and operational efficiency, with solid margins and a balanced capital structure. However, declining profitability margins and negative free cash flow growth present challenges that need to be addressed to sustain long-term financial health.

Income Statement

Devon Energy has shown strong revenue growth in the TTM period with a 72.8% increase, indicating robust performance in the oil and gas sector. The company maintains healthy margins, with a gross profit margin of 25.77% and a net profit margin of 16.98%. However, these margins have decreased compared to previous years, suggesting some pressure on profitability. The EBIT and EBITDA margins remain strong at 25.19% and 46.62%, respectively, reflecting efficient operations.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.60, indicating a balanced approach to leverage. Return on equity is solid at 19.49%, showcasing effective use of shareholder funds. The equity ratio stands at 49.16%, suggesting a stable capital structure. However, the decrease in stockholders' equity over the years could pose a risk if not addressed.

Cash Flow

Devon Energy's cash flow statement reveals challenges in free cash flow generation, with a significant negative growth rate of -236.03% in the TTM period. The operating cash flow to net income ratio is healthy at 1.49, indicating strong cash generation relative to earnings. However, the negative free cash flow to net income ratio of -0.23 highlights potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.88B	15.57B	15.14B	19.83B	13.75B	4.35B
Gross Profit	3.92B	4.27B	5.20B	8.97B	5.21B	-252.00M
EBITDA	7.76B	7.43B	7.57B	10.38B	5.42B	-1.36B
Net Income	2.72B	2.89B	3.75B	6.01B	2.78B	-2.68B
Balance Sheet
Total Assets	31.22B	30.49B	24.49B	23.72B	21.02B	9.91B
Cash, Cash Equivalents and Short-Term Investments	1.28B	846.00M	875.00M	1.45B	2.10B	2.05B
Total Debt	8.55B	9.20B	6.45B	6.70B	6.73B	4.54B
Total Liabilities	15.87B	15.79B	12.27B	12.43B	11.63B	6.89B
Stockholders Equity	15.35B	14.50B	12.06B	11.17B	9.26B	2.88B
Cash Flow
Free Cash Flow	3.03B	-853.00M	2.60B	3.40B	2.89B	193.00M
Operating Cash Flow	6.84B	6.60B	6.54B	8.53B	4.90B	1.35B
Investing Cash Flow	-3.47B	-7.33B	-3.94B	-5.12B	-1.57B	-646.00M
Financing Cash Flow	-2.77B	706.00M	-3.18B	-4.21B	-3.29B	-306.00M

Devon Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 36.4 is above the 20-day moving average (MA) of 34.43, above the 50-day MA of 34.05, and above the 200-day MA of 33.29, indicating a bullish trend. The MACD of 0.72 indicates Negative momentum. The RSI at 65.18 is Neutral, neither overbought nor oversold. The STOCH value of 65.55 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
EQT	81 Outperform	$36.82B	20.13	8.19%	1.08%	64.84%	219.47%
COP	75 Outperform	$107.62B	12.32	15.37%	3.65%	8.41%	-16.12%
FANG	74 Outperform	$42.78B	10.38	10.92%	2.68%	60.29%	-17.62%
CTRA	73 Outperform	$20.09B	12.17	11.86%	3.33%	26.13%	31.42%
DVN	72 Outperform	$22.47B	8.42	18.35%	2.91%	11.14%	-21.32%
OXY	67 Neutral	$40.81B	30.15	5.82%	2.36%	-2.48%	-65.26%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Devon Energy Corporate Events

Devon Energy Reports Strong Q3 Results and Dividend

Devon Energy is a prominent U.S. oil and gas producer, known for its diversified multi-basin portfolio and a strong presence in the Delaware Basin, focusing on generating free cash flow and returning capital to shareholders through safe and sustainable operations.

Devon Energy Surpasses Q3 Expectations Amid Optimization Efforts

Devon Energy’s third-quarter earnings call painted a picture of robust performance and strategic advancements, despite a challenging macro environment. The sentiment was largely positive, with the company exceeding key metrics and making significant strides in its business optimization plan. However, Devon acknowledged that the market has yet to fully recognize these efforts, reflecting a potential undervaluation of its stock.

Devon Energy Appoints Brent Smolik to Board

On October 1, 2025, Devon Energy Corporation appointed Brent J. Smolik to its Board of Directors. Mr. Smolik will serve on several key committees and has entered into the standard indemnity agreement for non-management directors. He will also receive compensation in line with other non-management directors, including an award of restricted stock valued at $154,384, which will vest immediately after the grant date.

The most recent analyst rating on (DVN) stock is a Buy with a $52.00 price target. To see the full list of analyst forecasts on Devon Energy stock, see the DVN Stock Forecast page.

Devon Energy to Announce Q3 2025 Earnings and Host Investor Call

Devon Energy announced it will release its third-quarter 2025 earnings on November 5, followed by a conference call on November 6 to address questions from analysts and investors. This announcement reflects Devon’s ongoing commitment to transparency and engagement with stakeholders, as it continues to focus on delivering strong financial performance and shareholder returns.

The most recent analyst rating on (DVN) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on Devon Energy stock, see the DVN Stock Forecast page.

Devon Energy’s Earnings Call Highlights Robust Performance

Devon Energy’s recent earnings call showcased a positive sentiment, highlighting substantial operational achievements and robust financial performance. The company demonstrated strong production and capital efficiency, which are driving significant shareholder returns. Despite these successes, challenges were noted, particularly with non-oil realizations and operational complexities in the Eagle Ford region.

Devon Energy CEO to Engage in Barclays Energy Conference

Devon Energy announced that its President and CEO, Clay Gaspar, will participate in a fireside chat at the Barclays 39th Annual CEO Energy & Power Conference. This participation underscores Devon’s active engagement with industry stakeholders and provides an opportunity to discuss its strategic priorities and market positioning. The event will be webcast live, allowing broader access to insights on Devon’s operations and future outlook.

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.

Devon Energy Reports Strong Q2 Results and Strategic Moves

Devon Energy is a leading U.S. oil and gas producer with a diversified portfolio, prominently featuring a significant presence in the Delaware Basin, and is known for its disciplined cash-return business model.