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olivLaw · US equity research

Devon Energy Corporation DVN

Crude Petroleum & Natural Gas · SIC 1311 · Vertical: Crude Petroleum & Natural Gas (SIC 1311)

44.12USD−7.35% · 1 dayClose 04 Nov 2026

Devon Energy is an independent oil and natural gas producer focused onshore in the United States. After the Coterra merger, closed on May 7, 2026, production reached 1,359 MBoe/d in the second quarter of 2026, including 503 MBbls/d of oil. The company reported 3.7 billion USD of operating cash flow in the same quarter.

At the close of 04 Nov 2026, Devon Energy Corporation (DVN) stock was 44.12 USD (−7.35% on the day), with market capitalisation 48.5 bn USD, P/E 10.5 on diluted EPS of 4.21 USD over the last 12 months, dividend yield 2.36%, beta 0.62, 52-week range 32.34–52.15 USD. Latest reported quarter (Q2 2026): revenue of 7.4 bn USD (+73.1% YoY), net income of 1.9 bn USD (+112.6% YoY), diluted EPS 2.03 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
48.5 bn USD
shares as of 22 Jul 2026
P/E (TTM)
10.5
Diluted EPS TTM 4.21 · TTM to 30 Jun 2026
E/P (TTM)
9.55%
TTM to 30 Jun 2026
Dividend yield
2.36%
DPS 12m 1.04
Beta (2y)
0.62
Volatility (1y) 36%
52-week range
32.3452.15

Price history

Loading chart…

Technical reading

RSI (14)
31.7
weak (30–45)
Bollinger (20, 2)
46.24 – 53.34
below the lower band · %B -0.30 · band width 14.3%
SMA 50 / 200
48.83 / 46.13
mixed trend
MACD (12, 26, 9)
-0.09 / 0.53
MACD below signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−8.0%−1.1%−6.9 pp—
3 months+4.8%−0.5%+5.3 pp—
6 months−5.3%+4.4%−9.7 pp—
Year to date+20.4%+12.3%+8.1 pp—
1 year+35.5%+13.5%+22.0 pp+36.4%
3 years−6.8%+76.4%−83.2 pp+21.5%
5 years+1.2%+63.7%−62.4 pp—
Max drawdown (1y)
−22.7%
27 Mar 2026 → 01 Jul 2026
Max drawdown (5y)
−65.7%
07 Jun 2022 → 08 Apr 2025
Compound annual growth (5y)
+0.2%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q2 2026 · 30 Jun 2026

Revenue
7.4 bn USD
+73.1% YoY
Net income
1.9 bn USD
+112.6% YoY
Diluted EPS
2.03
+44.0% YoY
net / operating
25.8% / unavailable

Quarterly margins

Quarterly statements · USD

Fiscal yearQ3 '24Q4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Revenue4.0 bn4.4 bn4.5 bn4.3 bn4.3 bn4.1 bn3.8 bn7.4 bn
Depreciation & amortisation794.0 m971.0 m912.0 m914.0 m879.0 m890.0 m904.0 m1.4 bn
Interest expense98.0 m128.0 m127.0 m126.0 m125.0 m119.0 m118.0 m144.0 m
Pre-tax income1.1 bn840.0 m646.0 m1.2 bn912.0 m747.0 m166.0 m2.4 bn
Income tax239.0 m187.0 m137.0 m244.0 m219.0 m185.0 m46.0 m473.0 m
Net income812.0 m641.0 m494.0 m899.0 m687.0 m562.0 m120.0 m1.9 bn
Diluted EPS1.300.98 ≈0.771.411.090.90 ≈0.192.03
Operating cash flow1.7 bn1.7 bn1.9 bn1.5 bn1.7 bn1.5 bn1.7 bn3.7 bn
Capex877.0 m926.0 m934.0 m956.0 m870.0 m832.0 m839.0 m1.3 bn
Dividends paid272.0 m143.0 m163.0 m156.0 m151.0 m—155.0 m366.0 m
Share repurchases295.0 m301.0 m301.0 m249.0 m250.0 m250.0 m69.0 m197.0 m

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 74 percentile of its own 31-quarter history (min 3.5, median 8.5, max 695.3; quarters with earnings only).

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue8.9 bn6.2 bn4.8 bn12.2 bn19.2 bn15.3 bn15.9 bn17.2 bn
Revenue YoY+36.8%−30.1%−22.4%+152.8%+57.0%−20.4%+4.5%+7.8%
Net income3.1 bn-355.0 m-2.7 bn2.8 bn6.0 bn3.7 bn2.9 bn2.6 bn
Net income YoY+241.2%−111.6%unavailableunavailable+114.4%−38.0%−22.6%−8.7%
Diluted EPS6.10-0.89-7.124.199.125.844.564.17
Diluted EPS YoY+258.8%−114.6%unavailableunavailable+117.7%−36.0%−21.9%−8.6%
net %34.4%-5.7%-55.5%23.0%31.5%24.5%18.1%15.4%
Free cash flowunavailableunavailableunavailable2.9 bn6.0 bn2.7 bn3.0 bn3.1 bn

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
1.4 bn USD
Financial debt
8.4 bn USD
Net debt
7.0 bn USD
Equity
15.5 bn USD
Total assets
31.6 bn USD
Debt / equity
0.54x
Current ratio
0.98x
ROE
17.5%
ROA
8.5%
FCF margin
18.1%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
15.3 bn
2024
15.9 bn
2025
17.2 bn

SEC (XBRL)· 18 Feb 2026verified

Depreciation & amortisation
2023
2.6 bn
2024
3.3 bn
2025
3.6 bn

SEC (XBRL)· 18 Feb 2026verified

Interest expense
2023
369.0 m
2024
401.0 m
2025
497.0 m

SEC (XBRL)· 18 Feb 2026verified

Pre-tax income
2023
4.6 bn
2024
3.7 bn
2025
3.5 bn

SEC (XBRL)· 18 Feb 2026verified

Income tax
2023
841.0 m
2024
770.0 m
2025
785.0 m

SEC (XBRL)· 18 Feb 2026verified

Net income
2023
3.7 bn
2024
2.9 bn
2025
2.6 bn

SEC (XBRL)· 18 Feb 2026verified

Diluted EPS
2023
5.84
2024
4.56
2025
4.17

SEC (XBRL)· 18 Feb 2026verified

Weighted average diluted shares
2023
642.0 m
2024
634.0 m
2025
633.0 m

SEC (XBRL)· 18 Feb 2026verified

Balance sheet · USD

Cash
2023
853.0 m
2024
811.0 m
2025
1.4 bn

SEC (XBRL)· 18 Feb 2026verified

Receivables
2023
1.6 bn
2024
2.0 bn
2025
1.8 bn

SEC (XBRL)· 18 Feb 2026verified

Inventories
2023
249.0 m
2024
294.0 m
2025
336.0 m

SEC (XBRL)· 18 Feb 2026verified

Current assets
2023
3.2 bn
2024
3.4 bn
2025
4.0 bn

SEC (XBRL)· 18 Feb 2026verified

Property, plant & equipment, net
2023
19.3 bn
2024
25.0 bn
2025
25.4 bn

SEC (XBRL)· 18 Feb 2026verified

Goodwill
2023
753.0 m
2024
753.0 m
2025
753.0 m

SEC (XBRL)· 18 Feb 2026verified

Total assets
2023
24.5 bn
2024
30.5 bn
2025
31.6 bn

SEC (XBRL)· 18 Feb 2026verified

Short-term debt
2023
483.0 m
2024
485.0 m
2025
998.0 m

SEC (XBRL)· 18 Feb 2026verified

Long-term debt
2023
5.7 bn
2024
8.4 bn
2025
7.4 bn

SEC (XBRL)· 18 Feb 2026verified

Current liabilities
2023
2.9 bn
2024
3.3 bn
2025
4.1 bn

SEC (XBRL)· 18 Feb 2026verified

Equity
2023
12.2 bn
2024
14.7 bn
2025
15.5 bn

SEC (XBRL)· 18 Feb 2026verified

Cash flow · USD

Operating cash flow
2023
6.5 bn
2024
6.6 bn
2025
6.7 bn

SEC (XBRL)· 18 Feb 2026verified

Capex
2023
3.9 bn
2024
3.6 bn
2025
3.6 bn

SEC (XBRL)· 18 Feb 2026verified

Free cash flow
2023
2.7 bn ≈
2024
3.0 bn ≈
2025
3.1 bn ≈

SEC (XBRL)· 18 Feb 2026derived

Investing cash flow
2023
-3.9 bn
2024
-7.3 bn
2025
-3.4 bn

SEC (XBRL)· 18 Feb 2026verified

Financing cash flow
2023
-3.2 bn
2024
706.0 m
2025
-2.7 bn

SEC (XBRL)· 18 Feb 2026verified

Dividends paid
2023
1.9 bn
2024
937.0 m
2025
—

SEC (XBRL)· 19 Feb 2025verified

Share repurchases
2023
979.0 m
2024
1.1 bn
2025
1.1 bn

SEC (XBRL)· 18 Feb 2026verified

Computed indicators

Growth

Revenue growth (YoY)
7.8%
computed by olivLawFY 2025
Revenue CAGR 3Y
-3.6%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
28.9%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
unavailable
input data missing
Net income growth (YoY)
-8.7%
computed by olivLawFY 2025
Net income CAGR 3Y
-24.1%
computed by olivLawFY 2022 → FY 2025
Net income CAGR 5Y
unavailable
the base of the ratio is not positive
EPS growth (YoY)
-8.6%
computed by olivLawFY 2025
EPS CAGR 3Y
-23.0%
computed by olivLawFY 2022 → FY 2025
EPS CAGR 5Y
unavailable
the base of the ratio is not positive
FCF growth (YoY)
5.5%
computed by olivLawFY 2025

Profitability

Gross margin
unavailable
input data missing
EBITDA margin
unavailable
input data missing
EBIT margin
unavailable
input data missing
Net margin
16.7%
computed by olivLawTTM to 30 Jun 2026
FCF margin
23.9%
computed by olivLawTTM to 30 Jun 2026

Returns

ROE
11.5%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROA
6.4%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROIC
unavailable
input data missing
ROCE
unavailable
input data missing
Payout ratio (EPS)
24.7%
computed by olivLawTTM to 30 Jun 2026
Payout ratio (FCF)
13.1%
computed by olivLawTTM to 30 Jun 2026

Balance sheet

Net debt
10.4 bn USD
computed by olivLawbalance sheet at 30 Jun 2026
Net debt / EBITDA
unavailable
input data missing
Debt / equity
0.3x
computed by olivLawbalance sheet at 30 Jun 2026
Interest coverage
unavailable
input data missing

Liquidity

Current ratio
0.7x
computed by olivLawbalance sheet at 30 Jun 2026
Quick ratio
0.7x
computed by olivLawbalance sheet at 30 Jun 2026
Cash ratio
0.1x
computed by olivLawbalance sheet at 30 Jun 2026

Cash

Operating cash flow
8.6 bn USD
computed by olivLawTTM to 30 Jun 2026
Capital expenditure
3.9 bn USD
computed by olivLawTTM to 30 Jun 2026
Free cash flow
4.7 bn USD
computed by olivLawTTM to 30 Jun 2026
FCF conversion
143.1%
computed by olivLawTTM to 30 Jun 2026
Cash conversion
unavailable
input data missing

Efficiency

Days sales outstanding
47 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Days inventory outstanding
unavailable
input data missing
Days payables outstanding
unavailable
input data missing
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
48.5 bn USD
computed by olivLawbalance sheet at 30 Jun 2026
Enterprise value
59.0 bn USD
computed by olivLawbalance sheet at 30 Jun 2026
Market cap / net income TTM
14.8x
computed by olivLawTTM to 30 Jun 2026
P/E (TTM)
10.5x
computed by olivLawTTM to 30 Jun 2026
Earnings yield
9.6%
computed by olivLawTTM to 30 Jun 2026
P/B
1.2x
computed by olivLawbalance sheet at 30 Jun 2026
P/S
2.5x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
3.0x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
P/FCF
10.3x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
FCF yield
9.7%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Dividend yield
2.4%
computed by olivLawTTM to 30 Jun 2026
Shareholder yield (distributions)
2.8%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026

Risk

Altman Z
unavailable
input data missing

Valuation

olivLaw classification

Neutral profile

Score: 47 / 100

A scoring methodology on indicators and valuation, not investment advice.

Closing price

44.12 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 48.5 bn USD

Key indicators

Market capitalisation
48.5 bn USD
computed by olivLawbalance sheet at 30 Jun 2026
P/E (TTM)
10.5x
computed by olivLawTTM to 30 Jun 2026
P/B
1.2x
computed by olivLawbalance sheet at 30 Jun 2026
EV/EBITDA
unavailable
input data missing
ROE
11.5%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Net margin
16.7%
computed by olivLawTTM to 30 Jun 2026
Revenue growth (YoY)
7.8%
computed by olivLawFY 2025
Dividend yield
2.4%
computed by olivLawTTM to 30 Jun 2026

Coverage and freshness

26/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Jun 2026
Latest balance sheet date: 30 Jun 2026
Share count (cover of the latest filing), as of: 22 Jul 2026
Source: SEC (XBRL)published 05 Aug 2026
verified 2543derived 150

Score by group

  • Valuation79
  • Returns64
  • Quality64
  • Balance sheet0
  • Growth0

Estimated value range

Low
42.45
USD per share
Mid
54.07
USD per share
High
67.29
USD per share
Price: 44.12 USD
The price is within the range
Potential to the central value: 22.5% (value / price − 1)
Margin of safety: 18.4% (1 − price / value)
Agreement between methods: high · 2 methods used · 2 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 38.01 – 81.64 USD.

Methods computed but outside the aggregate range: Dividend discount (DDM) (a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate).

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)46.89 – 81.64 (Mid 59.89)
    WACC 8.4% · starting FCFF 5.1 bn USD · terminal value share of EV 75%
    The WACC × g sensitivity gives the method's bounds; these are not probabilities.
    Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): -13.9%
  • Peers: EV/EBITDAunavailable · input data missing
  • Peers: P/E38.01 – 52.94 (Mid 48.24)
    7 companies used · median multiple 11.4x · quartiles 9.0x – 12.6x
    APA, EOG, EQT, EXE, OVV, OXY, PR
  • Dividend discount (DDM)outside the aggregate8.80 – 11.84 (Mid 10.10)
    a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate
Multiple comparisons use the SIC vertical: Crude Petroleum & Natural Gas (SIC 1311)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Neutral profile · Score 47/100

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality16.7%29 (vs peers)10%
FCF conversion · Quality143.1%100 (on a fixed band)10%
Revenue CAGR 3Y · Growth-3.6%0 (on a fixed band)13%
EPS CAGR 3Y · Growth-23.0%0 (on a fixed band)13%
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheetunavailableunavailable—
Current ratio · Balance sheet0.7x0 (on a fixed band)7%
P/E (TTM) · Valuation10.5x63 (vs peers)17%
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation9.7%100 (on a fixed band)13%
Shareholder yield (distributions) · Returns2.8%41 (on a fixed band)10%
Payout ratio (FCF) · Returns13.1%100 (on a fixed band)7%

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet· partial0/100 · 1/3 factors with a value
  • Growth0/100 · 2/2 factors with a value
  • Quality64/100 · 2/3 factors with a value
  • Returns64/100 · 2/2 factors with a value
  • Valuation79/100 · 2/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

DEVON ENERGY CORP/DE (DVN). Latest full fiscal year: 2025; data up to 2026-06-30.

Figures computed from the financial statements: revenue 17.2 bn USD in 2025; YoY growth 7.8%; net margin 16.7%; ROE 11.5%.

The estimated value range is 42.45–67.29 USD per share (median of 2 methods, agreement: high); assumptions are illustrative. Against the central value of 54.07 USD, the price of 44.12 USD leaves a potential of 22.5% (value / price − 1) and a margin of safety of 18.4% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 47/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance. Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • FCF conversion: 143.1%
  • FCF yield: 9.7%
  • Payout ratio (FCF): 13.1%

What contradicts it

  • Net margin: 16.7%
  • Revenue CAGR 3Y: -3.6%
  • EPS CAGR 3Y: -23.0%
  • Current ratio: 0.7x

Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, Interest coverage, EV/EBITDA.

Versus the vertical median

Crude Petroleum & Natural Gas (SIC 1311) · same industry (4-digit SIC) · compared with 8 companies

Only companies with a capitalisation between 6.8 bn and 432.8 bn (within 8× of the company's); 74 of the vertical were left out.

Multiples and returns vs the median

P/E
10.5x
vertical median 11.9x
below median (−12.4%)
EV/EBITDA
—
vertical median 5.6x
P/S
2.5x
vertical median 2.7x
below median (−10.1%)
P/B
1.2x
vertical median 1.4x
below median (−17.7%)
ROE
11.5%
vertical median 13.4%
below median (−13.6%)
Net margin
16.7%
vertical median 21.5%
below median (−22.5%)
EBIT margin
—
vertical median 29.3%
Revenue YoY
7.8%
vertical median 1.3%
above median (+507.2%)
Net debt/EBITDA
—
vertical median 0.8x
Dividend yield
2.4%
vertical median 2.0%
above median (+18.0%)

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
EOGEog Resources, Inc.77.1 bn11.422.5%25.4%−4.5%+36% / +19%
OXYOccidental Petroleum Corporation57.3 bn8.618.9%33.7%−1.9%+37% / −3%
FANGDiamondback Energy, Inc.51.1 bn25.05.3%11.0%+35.8%+20% / +18%
DVNDevon Energy Corp48.5 bn10.511.5%16.7%+7.8%+36% / −7%
EQTEqt Corporation32.9 bn12.510.9%28.4%+63.9%−14% / +31%
EXEExpand Energy Corporation20.2 bn7.614.6%19.8%+186.3%−28% / +9%
PRPermian Resources Corporation18.8 bn14.911.5%21.5%+1.3%+55% / +71%
OVVOvintiv Inc.16.8 bn12.712.1%12.8%−2.7%+53% / +41%
APAApa Corporation15.6 bn9.425.9%—unavailable+78% / +24%

1- and 3-year price returns: for DVN from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
16.95
Total return -60% · Per year -60%
30.10
Total return -30% · Per year -30%
45.51
Total return 5% · Per year 5%
3 years
13.89
Total return -65% · Per year -30%
27.99
Total return -32% · Per year -12%
46.82
Total return 12% · Per year 4%
5 years
11.38
Total return -69% · Per year -21%
26.02
Total return -34% · Per year -8%
48.17
Total return 19% · Per year 4%
What moves the 3-year price the most
  • Exit P/E± 7.00
  • Net margin± 4.90
  • Annual revenue growth± 4.36
  • Annual dilution± 0.41

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

In brief

Devon Energy is an independent oil and natural gas producer focused onshore in the United States. After the Coterra merger, closed on May 7, 2026, production reached 1,359 MBoe/d in the second quarter of 2026, including 503 MBbls/d of oil 2. The company reported 3.7 billion USD of operating cash flow in the same quarter 2.

SWOT

Strengths

  • Premium position in the Delaware Basin and a diversified portfolio across several shale basins.
  • Strong operating cash flow and an active program of returning capital to shareholders.
  • Greater scale after the merger, which supports cost efficiency and the synergy program.

Weaknesses

  • Dependence on volatile oil and gas prices limits revenue predictability.
  • Gas realizations were hurt by regional takeaway constraints in the Permian.
  • Integrating a large combined company after a merger carries the risk of temporary operating difficulties.

Opportunities

  • Announced synergies and portfolio optimization could improve margins and cash flow.
  • Newly acquired drilling locations in the Delaware Basin could support longer-term production growth.
  • New takeaway capacity expected in the second half of the year could improve gas prices.

Threats

  • Geopolitical conflicts and trade policies could cause sudden price shocks.
  • Regulatory and environmental pressures could limit drilling activity.
  • Inflation and shortages of services and equipment could raise production costs.

Risks

  • Price volatilityhigh

    Revenue depends directly on oil, gas and liquids prices, which have been highly volatile in recent years.

  • Reserve estimatesmedium

    Reserve estimates are complex and can be revised significantly, which could affect asset value.

  • Takeaway constraintsmedium

    Reliance on others' transport infrastructure can lead to interruptions or sales on less favorable terms.

  • Integration risksmedium

    Integrating the Coterra merger and reviewing the portfolio could encounter difficulties and delays.

  • Operational and environmental riskshigh

    Drilling operations involve risks of accidents, fires and leaks, with remediation and liability costs.

Investment thesis

What would need to be true (bull case)

  • If synergies are delivered as planned, margins and cash flow could rise significantly after the merger.
  • The premium Delaware Basin position could support production growth and strong returns over the long term.
  • An active program of share repurchases and dividends could support capital returns to shareholders.

What would break the thesis

  • Volatile oil and gas prices could quickly reduce revenue and cash flow.
  • Integrating a large company and reviewing the portfolio could delay the announced benefits.
  • Rising service costs and inflation could erode operating margins.

What to watch

  • Progress on Coterra merger synergies2027
  • Third-quarter production and capex guidanceQ3 2026
  • Commissioning of new Permian takeaway capacity2027

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

The business

Devon Energy Corporation is headquartered in Houston, Texas, and operates across several U.S. basins, focused on the Permian Basin, Rockies, Eagle Ford, Anadarko and Marcellus 23. In fiscal 2025 oil production rose 12%, to 389 MBbls/d 1. The Coterra merger, announced in February 2026, created a large-cap shale operator anchored by a Permian position 2.

The strategy emphasizes moderating production growth, capital and operational efficiency, and low leverage, while returning capital to shareholders through dividends and share repurchases 12. A business optimization plan aimed to improve annual pre-tax cash flow by 1.0 billion USD 1.

As part of the integration, the company is reviewing the combined asset portfolio and has begun an asset-by-asset evaluation aimed at maximizing shareholder value 3.

Segments

Rockies

The Rockies segment grew strongly in fiscal 2025, mainly due to the Williston Basin acquisition from Grayson Mill, which cost about 5.0 billion USD 1.

Eagle Ford and Anadarko

Eagle Ford and Anadarko are smaller segments with a lower share of production, and Eagle Ford declined in 2025 1.

Market context

Gas supply and takeaway capacity are important constraints, and regional Permian prices were affected by infrastructure limits 23.

Trends

  • Oil and gas price volatilitymixed

    Prices have been volatile, with Middle East tensions and OPEC+ decisions, which could affect the company's cash flow 2.

  • Consolidation in shaletailwind

    Large mergers such as the Coterra deal point to consolidation that could bring scale economies 2.

  • Takeaway capacity constraintsheadwind

    Permian infrastructure constraints have reduced gas prices, but the announced improvement in differentials could help 2.

  • Rising service costsheadwind

    Inflationary pressure and supply chain disruptions have raised operating costs, affecting margins 12.

Competitive position

Devon competes with major integrated and independent oil and gas companies for assets, equipment and services; some competitors have much larger resources 1. Competition is also present in marketing oil and gas 1.

  • Major integrated oil companies

    Large integrated companies competing for asset acquisitions, with substantially greater resources.

  • Independent oil and gas producers

    Independent producers competing for leases, properties and skilled personnel.

  • Oilfield service providers

    Suppliers of equipment and services, such as drilling rigs, where competition rises in high-price periods.

  • Oil and gas marketing companies

    Competitors in the markets for selling oil, gas and natural gas liquids.

News & filings

In the press

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Devon Energy Corporation · 18 Feb 2026
  2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Devon Energy Corporation · 05 Aug 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / Devon Energy Corporation · 04 Aug 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.