Devon Energy (DVN) AI Stock Analysis

• Market Cap: $20.32B
• Dividend Yield: 2.94%
• Average Volume (3M): 7.40M
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.56
• Revenue Growth: 10.98%
• EPS Growth: -19.25%
• Country: US
• Employees: 2,300
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.84
• Shares Outstanding: 634,800,000
• 10 Day Avg. Volume: 6,783,561
• 30 Day Avg. Volume: 7,399,761
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 1.66
• Enterprise Value/Gross Profit: 6.43
• Enterprise Value/Ebitda: 3.55
• 1Y Price Target: $43.53
• Price Target Upside: 35.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20

• Rating: 71 Outperform
• Price Target: $35.00 ▲(9.34% Upside)

Devon Energy's overall stock score reflects a strong earnings call performance and attractive valuation, which are the most significant factors. The company's financial performance shows solid profitability but is tempered by liquidity challenges. Technical analysis indicates a bearish trend, which slightly offsets the positive aspects. The absence of notable corporate events does not impact the score.

Positive Factors

Operational Efficiencies

Devon's operational efficiencies, particularly in the Delaware Basin, enhance cost management and improve profitability, supporting long-term growth.

Shareholder Returns

Devon's commitment to returning cash to shareholders through dividends and buybacks underscores its strong cash generation and shareholder-focused strategy.

Tax Legislation Benefits

The reduced tax rate enhances Devon's cash flow, providing additional capital for reinvestment or shareholder returns, bolstering financial flexibility.

Negative Factors

Negative Free Cash Flow

Negative free cash flow suggests challenges in covering operational expenses and investments, potentially affecting Devon's financial stability and growth capacity.

Declining Net Profit Margins

The decline in net profit margins indicates pressure on profitability, which could impact Devon's ability to sustain earnings growth and shareholder returns.

Operational Challenges in Eagle Ford

Post-JV dissolution challenges in the Eagle Ford could increase operational costs and complexities, potentially affecting production efficiency and profitability.

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 strong gross and EBITDA margins, indicating efficient operations. However, challenges such as declining net profit margins and negative free cash flow could impact future 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	16.75B	15.57B	15.14B	19.83B	13.75B	4.35B
Gross Profit	4.32B	4.27B	5.20B	8.97B	5.21B	-252.00M
EBITDA	7.81B	7.43B	7.57B	10.38B	5.42B	-1.36B
Net Income	2.84B	2.89B	3.75B	6.01B	2.78B	-2.68B
Balance Sheet
Total Assets	31.39B	30.49B	24.49B	23.72B	21.02B	9.91B
Cash, Cash Equivalents and Short-Term Investments	1.76B	846.00M	875.00M	1.45B	2.10B	2.05B
Total Debt	8.99B	9.20B	6.45B	6.70B	6.73B	4.54B
Total Liabilities	16.10B	15.79B	12.27B	12.43B	11.63B	6.89B
Stockholders Equity	15.06B	14.50B	12.06B	11.17B	9.26B	2.88B
Cash Flow
Free Cash Flow	-1.19B	-853.00M	2.60B	3.40B	2.89B	193.00M
Operating Cash Flow	5.27B	6.60B	6.54B	8.53B	4.90B	1.35B
Investing Cash Flow	-6.19B	-7.33B	-3.94B	-5.12B	-1.57B	-646.00M
Financing Cash Flow	989.58M	706.00M	-3.18B	-4.21B	-3.29B	-306.00M

Devon Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 32.01 is below the 20-day moving average (MA) of 33.02, below the 50-day MA of 34.20, and below the 200-day MA of 33.30, indicating a bearish trend. The MACD of -0.59 indicates Positive momentum. The RSI at 40.17 is Neutral, neither overbought nor oversold. The STOCH value of 23.35 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	―	$32.33B	17.80	8.19%	1.20%	64.84%	219.47%
COP	―	$110.08B	11.82	15.88%	3.54%	2.45%	-17.08%
FANG	―	$41.15B	10.21	13.55%	2.74%	51.78%	-27.29%
DVN	―	$20.32B	7.18	20.60%	2.94%	10.98%	-19.25%
CTRA	―	$17.86B	11.19	11.42%	3.72%	16.56%	20.21%
Sector *	―	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
OXY	―	$40.07B	23.84	6.98%	2.31%	-1.66%	-58.96%

Devon Energy Corporate Events

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.

Devon Energy Reports Q2 2025 Results and Declares Dividend

Devon Energy reported its second-quarter 2025 financial and operational results, alongside declaring a quarterly dividend and updating its 2025 outlook. The announcement highlights the company’s continued focus on generating free cash flow and returning capital to shareholders, which is likely to reinforce its market position and provide assurance to stakeholders about its financial health and strategic direction.

The most recent analyst rating on (DVN) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Devon Energy stock, see the DVN Stock Forecast page.