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Devon Energy
(NYSE:DVN)
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Rating:77Outperform
Price Target:
$53.00
â–²(12.98% Upside)
Action:Reiterated
Date:08/28/26
DVN scores well primarily on solid financial strength (strong profitability and a healthier balance sheet) and a positive earnings-call outlook driven by strong free cash flow, tightened guidance, and accelerated shareholder returns. Technicals support the view with price above key moving averages and positive MACD. The main limiter is free-cash-flow volatility and execution risks noted on the call (takeaway/basis exposure and timing of synergies/portfolio actions).
Positive Factors
Revenue growth and profitability
Re-accelerating revenue and healthy operating profitability indicate improving production and sales momentum. Although commodity prices affect results, the company’s scale and strong EBITDA generation provide a durable earnings base across the planning horizon.
Negative Factors
Free cash flow volatility
Positive cash generation is not yet consistent enough to be treated as stable through the cycle. High capital needs and working-capital swings can reduce funds available for shareholder returns, particularly when commodity prices or operating conditions weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth and profitability
Re-accelerating revenue and healthy operating profitability indicate improving production and sales momentum. Although commodity prices affect results, the company’s scale and strong EBITDA generation provide a durable earnings base across the planning horizon.
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
$53.93B
Dividend Yield2.13%
Average Volume (3M)10.35M
Price to Earnings (P/E)11.5
Beta (1Y)0.15
Revenue Growth18.28%
EPS Growth-5.35%
CountryUS
Employees2,200
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)4.23
Shares Outstanding1,100,000,000
10 Day Avg. Volume8,721,288
30 Day Avg. Volume10,352,832
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
$59.67Price Target Upside27.19% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering19
EPS Forecast (FY)5.14
Revenue Forecast (FY)$24.22B
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 Energy makes money primarily by producing and selling crude oil, natural gas, and natural gas liquids (NGLs) from its operated and non-operated wells. Revenue is recognized when produced volumes are delivered to customers (such as refiners, ...
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
81
Very Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.68B | 17.19B | 15.94B | 15.26B | 19.17B | 12.21B |
| Gross Profit | 6.70B | 4.39B | 4.71B | 5.37B | 8.37B | 3.68B |
| EBITDA | 8.83B | 7.56B | 7.37B | 7.55B | 10.37B | 5.44B |
| Net Income | 3.28B | 2.64B | 2.89B | 3.75B | 6.01B | 2.81B |
Balance Sheet | ||||||
| Total Assets | 70.89B | 31.60B | 30.49B | 24.49B | 23.72B | 21.02B |
| Cash, Cash Equivalents and Short-Term Investments | 1.01B | 1.43B | 846.00M | 875.00M | 1.45B | 2.10B |
| Total Debt | 11.74B | 8.78B | 9.20B | 6.45B | 6.70B | 6.76B |
| Total Liabilities | 29.15B | 16.07B | 15.79B | 12.27B | 12.43B | 11.63B |
| Stockholders Equity | 41.75B | 15.53B | 14.50B | 12.06B | 11.17B | 9.26B |
Cash Flow | ||||||
| Free Cash Flow | 1.67B | 2.80B | -853.00M | 2.60B | 3.40B | 2.89B |
| Operating Cash Flow | 8.55B | 6.71B | 6.60B | 6.54B | 8.53B | 4.90B |
| Investing Cash Flow | -6.39B | -3.39B | -7.33B | -3.94B | -5.12B | -1.57B |
| Financing Cash Flow | -2.92B | -2.73B | 706.00M | -3.18B | -4.21B | -3.29B |
Devon Energy Technical Analysis
Positive
46.91
Price Trends
44.70
Positive
45.38
Positive
43.13
Positive
Market Momentum
1.13
Negative
62.23
Neutral
80.65
Negative
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 46.91 is below the 20-day moving average (MA) of 47.13, above the 50-day MA of 44.70, and above the 200-day MA of 43.13, indicating a bullish trend. The MACD of 1.13 indicates Negative momentum. The RSI at 62.23 is Neutral, neither overbought nor oversold. The STOCH value of 80.65 is Negative, 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $78.13B | 11.30 | 22.38% | 2.79% | 17.13% | 24.89% | |
77 Outperform | $53.93B | 11.53 | 14.90% | 2.31% | 18.28% | -5.35% | |
74 Outperform | $15.66B | 9.34 | 26.27% | 2.77% | -12.44% | 58.92% | |
74 Outperform | $164.82B | 17.95 | 14.32% | 2.74% | 9.47% | 1.21% | |
71 Outperform | $56.96B | 39.64 | 4.22% | 2.03% | 21.45% | -63.30% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | $60.89B | 9.11 | 18.97% | 1.75% | -10.74% | 91.14% |
* Energy Sector Average
DVN
Devon Energy
48.06
14.18
41.85%
APA
APA
42.77
20.79
94.56%
COP
Conocophillips
134.26
44.15
49.00%
EOG
EOG Resources
145.19
31.22
27.40%
OXY
Occidental Petroleum
60.04
15.06
33.48%
FANG
Diamondback
199.22
63.77
47.08%
Devon Energy Corporate Events
Business Operations and StrategyExecutive/Board ChangesM&A Transactions
Devon Energy Updates CEO Compensation Following Coterra Merger
Positive
Aug 27, 2026
On August 21, 2026, Devon Energy’s Compensation Committee approved changes to the pay package for Chief Executive Officer and President Clay M. Gaspar, reflecting updated benchmarking after the company’s merger with Coterra Energy Inc....
Business Operations and StrategyExecutive/Board Changes
Devon Energy Announces Major Executive Leadership Reshuffle
Neutral
Aug 20, 2026
Effective August 20, 2026, Devon Energy implemented a significant reshuffling of its executive leadership overseeing exploration and production, appointing Tom Hellman as Executive Vice President for the Anadarko, Eagle Ford, Marcellus and Rockies...
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 ...
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.