Devon Energy (DVN) AI Stock Analysis

• Market Cap: $20.66B
• Dividend Yield: 2.91%
• Average Volume (3M): 7.27M
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.56
• 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: 634,800,000
• 10 Day Avg. Volume: 6,834,929
• 30 Day Avg. Volume: 7,266,543
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $42.82
• Price Target Upside: 32.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $36.00 ▲(11.01% Upside)

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 (DVN) is an American independent energy company primarily engaged in the exploration, development, and production of oil and natural gas. Headquartered in Oklahoma City, Devon operates in the upstream sector of the oil and gas industry, focusing on high-quality resource plays in key areas such as the Delaware Basin, the Anadarko Basin, and the Eagle Ford Shale. The company is committed to sustainable practices and innovation, aiming to deliver long-term value for its shareholders through strategic investments in energy resources.

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 earns money by extracting hydrocarbons from its various production sites and selling them in the open market. Key revenue streams include the sale of produced oil and gas, which are influenced by market prices, production volumes, and operational efficiencies. Additionally, Devon engages in hedging strategies to manage price volatility and protect its revenue. The company also benefits from partnerships and joint ventures with other energy firms, enabling shared resources and enhanced production capabilities. Factors such as geopolitical events, changes in regulatory policies, and market demand for energy commodities further impact Devon's earnings.

Devon Energy Financial Statement Overview

Summary

Devon Energy shows solid profitability with strong gross and EBITDA margins. However, challenges include declining net profit margins and negative free cash flow, which could impact liquidity. The balance sheet is stable with a reasonable debt-to-equity ratio, but the decrease in return on equity suggests a need for strategic improvements.

Income Statement

Devon Energy's income statement reflects a strong gross profit margin of 56.29% TTM, indicating efficient cost management. However, the net profit margin has decreased slightly to 17.30% TTM from 24.56% in 2023, suggesting some pressure on profitability. Revenue growth is modest at 1.28% TTM, following a decline in 2023, which could indicate market challenges. The EBIT margin is negative TTM, highlighting operational challenges, but the EBITDA margin remains robust at 47.41% TTM, showing strong core earnings potential.

Balance Sheet

The balance sheet shows a manageable debt-to-equity ratio of 0.60 TTM, reflecting a stable capital structure. Return on equity is healthy at 19.49% TTM, although it has decreased from 31.07% in 2023, indicating reduced profitability on equity. The equity ratio stands at 47.98% TTM, suggesting a balanced approach to financing with equity and debt.

Cash Flow

Cash flow analysis reveals a significant challenge with free cash flow, which is negative TTM, indicating potential liquidity issues. The operating cash flow to net income ratio is strong at 1.49 TTM, showing good cash generation relative to earnings. However, the negative free cash flow to net income ratio of -0.23 TTM highlights the need for improved cash management.

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	31.22M	30.49B	24.49B	23.72B	21.02B	9.91B
Cash, Cash Equivalents and Short-Term Investments	1.28M	846.00M	875.00M	1.45B	2.10B	2.05B
Total Debt	8.55M	9.20B	6.45B	6.70B	6.73B	4.54B
Total Liabilities	15.87M	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	1.62B	-853.00M	2.60B	3.40B	2.89B	193.00M
Operating Cash Flow	3.61B	6.60B	6.54B	8.53B	4.90B	1.35B
Investing Cash Flow	-1.85B	-7.33B	-3.94B	-5.12B	-1.57B	-646.00M
Financing Cash Flow	-1.20B	706.00M	-3.18B	-4.21B	-3.29B	-306.00M

Devon Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.43
• 50DMA: Negative
• 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 Negative. The current price of 32.43 is below the 20-day moving average (MA) of 32.46, below the 50-day MA of 33.96, and below the 200-day MA of 33.19, indicating a bearish trend. The MACD of -0.42 indicates Negative momentum. The RSI at 44.69 is Neutral, neither overbought nor oversold. The STOCH value of 38.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DVN.

Devon Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EQT	78 Outperform	$34.85B	19.05	8.19%	1.13%	64.84%	219.47%
COP	76 Outperform	$109.79B	11.79	15.88%	3.64%	2.45%	-17.08%
FANG	74 Outperform	$40.36B	9.68	10.92%	2.80%	60.29%	-17.62%
CTRA	73 Outperform	$19.68B	11.93	11.86%	3.37%	26.13%	31.42%
DVN	72 Outperform	$20.66B	7.29	18.35%	2.91%	11.14%	-21.32%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
OXY	61 Neutral	$39.46B	23.55	6.98%	2.36%	-1.66%	-58.96%

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.