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Devon Energy
(NYSE:DVN)
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Rating:73Outperform
Price Target:
$53.00
â–²(12.98% Upside)
Action:Reiterated
Date:10/09/26
DVN scores well overall on strong profitability and a healthier, lower-leverage balance sheet, reinforced by a positive earnings call with strong free cash flow generation and synergy visibility. Offsetting this, free cash flow has been notably weaker and more volatile over time, and technical signals are mostly neutral, limiting near-term momentum support. Valuation and shareholder yield are supportive, and the Eagle Ford divestiture adds a positive capital-allocation catalyst.
Positive Factors
Revenue Growth and Profitability
Re-accelerating revenue alongside healthy margins indicates improving operating momentum and continued ability to convert production into earnings. Although profitability varies with commodity conditions, the current earnings base supports reinvestment and provides resilience over the next several quarters.
Negative Factors
Free Cash Flow Volatility
Positive current cash generation is offset by a sharp year-over-year decline and a history of inconsistency, including negative free cash flow in 2024. This variability can reduce confidence in recurring shareholder returns and constrain capital allocation when commodity conditions weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth and Profitability
Re-accelerating revenue alongside healthy margins indicates improving operating momentum and continued ability to convert production into earnings. Although profitability varies with commodity conditions, the current earnings base supports reinvestment and provides resilience over the next several quarters.
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
$55.42B
Dividend Yield2.25%
Average Volume (3M)11.26M
Price to Earnings (P/E)11.8
Beta (1Y)0.08
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. Volume8,090,825
30 Day Avg. Volume11,260,650
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 Cap0.90
Enterprise Value/Revenue2.53
Enterprise Value/Gross Profit7.42
Enterprise Value/Ebitda5.63
Forecast
1Y Price Target
$62.06Price Target Upside32.29% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering19
EPS Forecast (FY)5.36
Revenue Forecast (FY)$26.67B
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 05, 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
48.17
Positive
45.72
Positive
44.97
Positive
Market Momentum
0.72
Negative
56.13
Neutral
70.31
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 46.91 is below the 20-day moving average (MA) of 48.57, below the 50-day MA of 48.17, and above the 200-day MA of 44.97, indicating a bullish trend. The MACD of 0.72 indicates Negative momentum. The RSI at 56.13 is Neutral, neither overbought nor oversold. The STOCH value of 70.31 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $17.48B | 10.49 | 26.27% | 2.01% | -12.44% | 58.92% | |
79 Outperform | $82.81B | 12.22 | 22.38% | 2.58% | 17.13% | 24.89% | |
74 Outperform | $175.00B | 19.27 | 14.32% | 2.31% | 9.47% | 1.21% | |
73 Outperform | $55.42B | 11.79 | 14.90% | 2.25% | 18.28% | -5.35% | |
71 Outperform | $56.27B | 39.24 | 4.22% | 2.12% | 21.45% | -63.30% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | $62.68B | 9.43 | 18.97% | 1.66% | -10.74% | 91.14% |
* Energy Sector Average
DVN
Devon Energy
49.87
17.26
52.94%
APA
APA
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25.57
106.31%
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Conocophillips
145.67
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66.81%
EOG
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157.88
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50.73%
OXY
Occidental Petroleum
62.70
20.66
49.14%
FANG
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200.93
57.22
39.82%
Devon Energy Corporate Events
Business Operations and StrategyStock BuybackM&A Transactions
Devon Energy Sells Eagle Ford Assets to Crescent
Positive
Oct 8, 2026
On October 8, 2026, Devon Energy said it had agreed to sell its Eagle Ford oil and gas assets in South Texas to Crescent Energy for $4.2 billion in cash, subject to customary adjustments, with an effective date of July 1, 2026 and closing targeted...
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...
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.