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Devon Energy
(NYSE:DVN)
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Rating:71Outperform
Price Target:
$49.00
â–²(8.79% Upside)
Action:Reiterated
Date:08/06/26
DVN scores well on earnings-call execution and outlook (tightened guidance, strong adjusted free cash flow, and visible merger synergies) and is supported by reasonable valuation (12.5x P/E with a 2.3% yield). The overall score is held back by uneven free-cash-flow consistency in the financial statements and only neutral-to-mixed technical signals.
Positive Factors
Strong adjusted free cash flow generation
A $1.7B adjusted free-cash-flow quarter demonstrates durable operating cash generation capacity from combined assets. Sustained FCF supports self-funding of capex, debt reduction, dividend increases and buybacks, strengthening financial flexibility through commodity cycles.
Negative Factors
Choppy free-cash-flow consistency
Volatile free-cash-flow across recent periods indicates sensitivity to commodity pricing, reinvestment needs and working-capital swings. This reduces predictability of sustainable shareholder returns and constrains long-term planning unless cyclicality is further mitigated by hedges or structural cost reductions.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong adjusted free cash flow generation
A $1.7B adjusted free-cash-flow quarter demonstrates durable operating cash generation capacity from combined assets. Sustained FCF supports self-funding of capex, debt reduction, dividend increases and buybacks, strengthening financial flexibility through commodity cycles.
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
$52.05B
Dividend Yield2.3%
Average Volume (3M)12.91M
Price to Earnings (P/E)12.5
Beta (1Y)0.24
Revenue Growth1.96%
EPS Growth-18.06%
CountryUS
Employees2,200
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)3.61
Shares Outstanding1,153,403,100
10 Day Avg. Volume9,817,132
30 Day Avg. Volume12,913,805
Financial Highlights & Ratios
PEG Ratio-1.10
Price to Book (P/B)1.48
Price to Sales (P/S)1.34
P/FCF Ratio8.22
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$59.78Price Target Upside32.72% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering20
EPS Forecast (FY)4.91
Revenue Forecast (FY)$22.91B
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:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call presented a predominately positive operational and financial picture: strong combined-quarter execution, $1.7B adjusted free cash flow, rapid merger integration with 350+ synergy initiatives and clear balance sheet progress (dividend increase, $1.25B debt reduction, resumed buybacks). Technology and enhanced-recovery pilots provide additional upside. Key near-term challenges include stock underperformance driven by market desire for clearer asset-review outcomes, some communication missteps on the lease sale economics, Permian gas takeaway/basis risk and the fact that some synergies and portfolio actions have yet to flow through financials. On balance, the positives (cash generation, cost performance, liquidity, synergy pipeline and tech advantages) outweigh the lowlights, though execution and timing risks remain.Positive Updates
Strong Combined Quarter Execution & Cash Generation
Delivered $1.7 billion of adjusted free cash flow in 2Q26; outperformed guidance across key metrics with oil production of 503,000 bbl/d (1.6% above the midpoint) and total production of 1.36 million BOE/d (top end of guidance). Capital spending of $1.3 billion was 2.4% favorable to midpoint and total operating costs (including GP&T) were $8.23/BOE, ~2% better than midpoint.
Negative Updates
Share Price Underperformance & Market Patience
Pro forma stock has underperformed relative to large-cap peers post-close; management acknowledged investor impatience and noted market wants clearer visibility on asset sales and capital allocation decisions, which pressures near-term sentiment.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Combined Quarter Execution & Cash Generation
Delivered $1.7 billion of adjusted free cash flow in 2Q26; outperformed guidance across key metrics with oil production of 503,000 bbl/d (1.6% above the midpoint) and total production of 1.36 million BOE/d (top end of guidance). Capital spending of $1.3 billion was 2.4% favorable to midpoint and total operating costs (including GP&T) were $8.23/BOE, ~2% better than midpoint.
Read all positive updates
Company Guidance
Devon tightened its 2026 guidance after a strong combined Q2: full-year oil of 495,000–505,000 bbl/d, total volumes of ~1.4 million BOE/d, and total capital of $4.8–5.0 billion; Q3 ramps to 550,000–560,000 bbl/d oil, 1.66–1.69 million BOE/d total volumes, and $1.4–1.5 billion of capital (the year’s high quarter), with Q4 expected at similar or higher oil versus Q3. Q2 results that underpin the outlook included oil of 503,000 bbl/d (1.6% above midpoint), total production of 1.36 million BOE/d (top end of guide), capital of $1.3 billion (≈2–2.4% favorable), total operating costs incl. GP&T of $8.23/BOE (~2% better than midpoint), an improved reinvestment rate of 43% of cash flow, and $1.7 billion of adjusted free cash flow; Devon also cites a 24% better implied second-half capital efficiency versus peers (20:1 value-adjusted basis).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 | 2.64B | 2.80B | -853.00M | 2.60B | 3.40B | 2.89B |
| Operating Cash Flow | 6.42B | 6.71B | 6.60B | 6.54B | 8.53B | 4.90B |
| Investing Cash Flow | -3.61B | -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
Positive
45.04
Price Trends
43.66
Positive
45.77
Negative
41.55
Positive
Market Momentum
0.28
Negative
51.24
Neutral
57.27
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 45.04 is above the 20-day moving average (MA) of 43.79, above the 50-day MA of 43.66, and above the 200-day MA of 41.55, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 51.24 is Neutral, neither overbought nor oversold. The STOCH value of 57.27 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $79.20B | 14.55 | 22.38% | 2.79% | 0.31% | -5.71% | |
71 Outperform | $52.05B | 12.50 | 14.78% | 2.31% | 1.96% | -18.06% | |
71 Outperform | $13.19B | 8.70 | 25.11% | 2.77% | -17.38% | 54.99% | |
71 Outperform | $57.09B | 238.76 | 4.68% | 2.03% | 18.09% | -94.57% | |
69 Neutral | $146.78B | 20.46 | 11.29% | 2.74% | 1.02% | -25.38% | |
69 Neutral | $56.76B | 13.85 | 12.82% | 1.75% | -15.17% | -66.00% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
DVN
Devon Energy
42.09
10.46
33.08%
APA
APA
34.66
17.21
98.61%
COP
Conocophillips
115.04
24.92
27.65%
EOG
EOG Resources
134.23
21.56
19.13%
OXY
Occidental Petroleum
53.81
12.13
29.11%
FANG
Diamondback
186.17
45.44
32.29%
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 ...
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.