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Devon Energy
(NYSE:DVN)
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Rating:71Outperform
Price Target:
$46.00
â–²(4.00% Upside)
Action:Reiterated
Date:07/01/26
Overall score is driven primarily by solid financial performance (strong profitability with manageable leverage, despite uneven free cash flow) and a very constructive earnings-call outlook (strong Q1 free cash flow, early optimization delivery, and merger synergy potential). Valuation is supportive (P/E 11.491 and 2.5169% yield), while technicals are the main drag with the stock trading below key short- and medium-term moving averages.
Positive Factors
Free Cash Flow Generation
Sustained quarterly free cash flow of $816M with disciplined capex demonstrates durable cash generation capacity. This strengthens the company's ability to fund reinvestment, dividends, and debt management through cycles, reducing reliance on external financing and supporting long-term financial flexibility.
Negative Factors
Free Cash Flow Volatility
Historic FCF volatility—including a 2024 negative year and TTM FCF below net income—signals sensitivity to commodity cycles and reinvestment timing. This makes long‑range capital returns and deleveraging plans less predictable and can constrain sustainable shareholder distributions.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Generation
Sustained quarterly free cash flow of $816M with disciplined capex demonstrates durable cash generation capacity. This strengthens the company's ability to fund reinvestment, dividends, and debt management through cycles, reducing reliance on external financing and supporting long-term financial flexibility.
Read all positive factors
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 (DVN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$46.68B
Dividend Yield2.64%
Average Volume (3M)14.69M
Price to Earnings (P/E)11.2
Beta (1Y)0.24
Revenue Growth1.96%
EPS Growth-18.06%
CountryUS
Employees2,300
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)3.61
Shares Outstanding1,153,403,100
10 Day Avg. Volume17,294,904
30 Day Avg. Volume14,693,156
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 Cap0.71
Enterprise Value/Revenue2.01
Enterprise Value/Gross Profit9.08
Enterprise Value/Ebitda4.71
Forecast
1Y Price Target
$60.53Price Target Upside36.84% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering21
EPS Forecast (FY)5.42
Revenue Forecast (FY)$23.20B
Devon Energy Business Overview & Revenue Model
Company Description
As an independent energy producer, Devon Energy Corporation primarily focuses on the exploration, development, and extraction of oil, natural gas, and natural gas liquids within the United States. The company manages roughly 5,134 gross wells. Est...
How the Company Makes Money
Devon primarily makes money by producing hydrocarbons and selling them under purchase/marketing agreements, with revenue largely determined by production volumes and realized commodity prices. Key revenue streams include: (1) Crude oil sales: Oil ...
Devon Energy Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial message: beat production and capital targets, generated $816M of free cash flow, achieved a $1B business optimization goal early, secured shareholder approval to close the Cotera merger (with a $1B synergy floor and 156 identified opportunities), and highlighted scalable AI-driven production gains (850+ wells automated). Manageable near-term challenges were discussed — Waha pricing headwinds, some Q1 realization/tax noise, and potential tax impacts from future asset sales — but these are framed as addressable via commercial fixes, hedging, tax-aware structuring, and integration-driven efficiencies. Overall, the positives materially outweigh the negatives, driven by strong cash generation, merger upside, and technology-led productivity improvements.Positive Updates
Strong Q1 Financial Performance
Q1 production of 387,000 barrels of oil per day (top end of guidance), capital spending 6% below the midpoint of guidance, and $816 million of free cash flow for the quarter — demonstrating capital efficiency and operational execution.
Negative Updates
Negative Waha Prices and Gas Realizations
Persistently weak Waha hub pricing created pressure on Permian gas realizations; management has had to curtail higher gas-oil-ratio production and rely on commercial fixes (pipeline participation and hedging) — residual exposure remains until infrastructure additions fully come online.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Q1 Financial Performance
Q1 production of 387,000 barrels of oil per day (top end of guidance), capital spending 6% below the midpoint of guidance, and $816 million of free cash flow for the quarter — demonstrating capital efficiency and operational execution.
Read all positive updates
Company Guidance
The company guided that Q1 production delivered oil of 387 Mbbl/d (top of range) with capital spending 6% below midpoint, generating $816 million of free cash flow and positioning stand‑alone Devon to hit its $1.0 billion business‑optimization target well ahead of schedule; management reiterated a $1.0 billion synergy target (the floor) for the Cotera merger with 156 identified value‑capture opportunities, expects to provide combined full‑year guidance in mid‑June, plans a >30% per‑share dividend increase starting in Q2 (subject to board approval), will resume and expand buybacks at close, and noted operational metrics including >850 wells on autonomous artificial‑lift optimization (targeting ~1,500 wells), Smart Gas Lift pilot uplifts of ~2–3% (with current uplifts higher), pro‑forma Waha exposure of ~10–15% once Blackcomb is online, Q1 acquisition capital of ~$150 million (90% Delaware), and a third‑party estimate of 10+ years of inventory at current development pace.Devon Energy Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 16.54B | 17.19B | 15.94B | 15.26B | 19.17B | 12.21B |
| Gross Profit | 3.66B | 4.39B | 4.71B | 5.37B | 8.37B | 3.68B |
| EBITDA | 7.06B | 7.56B | 7.37B | 7.55B | 10.37B | 5.44B |
| Net Income | 2.27B | 2.64B | 2.89B | 3.75B | 6.01B | 2.81B |
Balance Sheet | ||||||
| Total Assets | 32.54B | 31.60B | 30.49B | 24.49B | 23.72B | 21.02B |
| Cash, Cash Equivalents and Short-Term Investments | 1.81B | 1.43B | 846.00M | 875.00M | 1.45B | 2.10B |
| Total Debt | 8.59B | 8.78B | 9.20B | 6.45B | 6.70B | 6.76B |
| Total Liabilities | 17.11B | 16.07B | 15.79B | 12.27B | 12.43B | 11.63B |
| Stockholders Equity | 15.43B | 15.53B | 14.50B | 12.06B | 11.17B | 9.26B |
Cash Flow | ||||||
| Free Cash Flow | 2.69B | 3.12B | -853.00M | 2.60B | 3.40B | 2.89B |
| Operating Cash Flow | 6.47B | 6.71B | 6.60B | 6.54B | 8.53B | 4.90B |
| Investing Cash Flow | -3.66B | -3.39B | -7.33B | -3.94B | -5.12B | -1.57B |
| Financing Cash Flow | -2.23B | -2.73B | 706.00M | -3.18B | -4.21B | -3.29B |
Devon Energy Technical Analysis
Negative
44.23
Price Trends
45.65
Negative
45.76
Negative
40.49
Negative
Market Momentum
-1.30
Positive
33.87
Neutral
5.94
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DVN, the sentiment is Negative. The current price of 44.23 is above the 20-day moving average (MA) of 43.14, below the 50-day MA of 45.65, and above the 200-day MA of 40.49, indicating a bearish trend. The MACD of -1.30 indicates Positive momentum. The RSI at 33.87 is Neutral, neither overbought nor oversold. The STOCH value of 5.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $32.91B | 9.71 | 14.34% | 1.17% | 50.77% | 800.70% | |
71 Outperform | $46.68B | 11.21 | 14.78% | 2.64% | 1.96% | -18.06% | |
69 Neutral | $131.26B | 18.01 | 11.29% | 3.43% | 1.02% | -25.38% | |
69 Neutral | $48.65B | 11.87 | 12.82% | 2.39% | -15.17% | -66.00% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | $48.40B | 202.40 | 1.06% | 2.70% | 18.09% | -94.57% |
* Energy Sector Average
DVN
Devon Energy
40.47
8.62
27.06%
COP
Conocophillips
104.73
15.15
16.91%
EQT
EQT
52.61
-2.90
-5.22%
OXY
Occidental Petroleum
48.91
6.44
15.16%
FANG
Diamondback
172.04
37.59
27.96%
Devon Energy Corporate Events
Executive/Board ChangesShareholder Meetings
Devon Energy Shareholders Reinforce Board and Governance Stability
Positive
Jun 30, 2026
At its 2026 Annual Meeting of Stockholders held on June 30, 2026, Devon Energy shareholders elected all eleven nominees to the board of directors to serve one-year terms, with each director receiving strong majority support despite some variation ...
Business Operations and StrategyPrivate Placements and Financing
Devon Energy Simplifies Capital Structure With Note Exchange
Positive
Jun 25, 2026
On June 25, 2026, Devon Energy completed the settlement of private exchange offers for a broad slate of outstanding notes issued by its wholly owned subsidiary Coterra Energy Inc., retiring most of those securities in exchange for new Devon-issued...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Devon Energy Registers Shares Tied to Coterra Merger Conversion
Neutral
Jun 5, 2026
On June 5, 2026, Devon Energy filed a prospectus supplement to register up to 175,000 shares of its common stock that can be issued upon conversion of Coterra Energy Operating Co.’s 8 1/8% Series A Cumulative Perpetual Convertible Preferred ...
Financial DisclosuresM&A TransactionsRegulatory Filings and Compliance
Devon Energy Completes Merger and Integration With Coterra
Neutral
May 22, 2026
On May 7, 2026, Devon Energy completed its previously announced merger with Coterra Energy, exchanging each Coterra common share for 0.70 shares of Devon and cash in lieu of fractional shares, and treating Coterra equity awards under the agreed me...
Business Operations and StrategyM&A Transactions
Devon Energy Expands Delaware Basin Position With Major Acquisition
Positive
May 21, 2026
On May 20, 2026, Devon Energy completed the $2.6 billion acquisition of 16,300 net undeveloped acres in the core of the Delaware Basin in Lea and Eddy counties, New Mexico, via a federal Bureau of Land Management oil and gas lease sale. The purcha...
Business Operations and StrategyExecutive/Board ChangesDelistings and Listing ChangesM&A Transactions
Devon Energy Completes Transformative All-Stock Merger with Coterra
Positive
May 7, 2026
On May 7, 2026, Devon Energy and Coterra Energy completed their previously announced all-stock merger, creating a large-cap shale operator anchored by a leading position in the core of the Delaware Basin and broad exposure to key U.S. basins. The ...
Business Operations and StrategyM&A TransactionsShareholder Meetings
Devon Shareholders Approve Key Steps for Coterra Merger
Positive
May 5, 2026
On May 4, 2026, Devon Energy held a virtual special meeting at which stockholders overwhelmingly approved the issuance of new common shares to Coterra Energy stockholders under a previously announced merger agreement, with more than 470 million vo...
Legal ProceedingsM&A TransactionsRegulatory Filings and ComplianceShareholder Meetings
Devon Energy Supplements Coterra Merger Disclosures Amid Lawsuits
Negative
Apr 24, 2026
Devon Energy and Coterra Energy, both U.S. oil and gas producers, entered into a merger agreement on February 1, 2026 under which a Devon subsidiary will merge into Coterra, leaving Coterra as a wholly owned Devon unit. The companies filed an S-4 ...
Financial DisclosuresM&A TransactionsRegulatory Filings and Compliance
Devon Energy Details Pro Forma Impact of Coterra Merger
Neutral
Apr 10, 2026
Devon Energy has filed unaudited pro forma combined financial statements tied to its proposed merger with Coterra Energy, under which each Coterra share would be exchanged for 0.70 shares of Devon common stock. The documents include a pro forma ba...
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...
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.