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Devon Energy Corporation
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S&P 500
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$31.5B
Market Cap
8.8
P/E
1.44
PEG
12.9%
ROCE
17.7%
ROE
0.56
D/E
23.9%
OPM
-4.1%
% from 52W High
88
α RS
🔍 DVN is showing a multi-screen setup because it matches 7 of 39 tracked screener presets, Sector RRG has Energy in the Leading quadrant with the trail still strengthening, RS Rating is 88, and it has maintained a 24-day Near 52-Week High momentum persistence. The main caution: the Price Pessimism preset's Backtest win rate is only 45%. Net: Mixed signal stack, not a recommendation. ? Conviction RRG RS Rating Momentum Streaks Backtest
Sources
Conviction 7/39 · Energy in Leading quadrant · RS Rating 88 · Near 52-Week High streak: 24d · Backtest win rate 45%
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Currency-adjusted total returns for DVN including FX impact
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📈 Price History
Ratio Health
— Excellent
— Good
— Average
— Poor
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About

Devon Energy Corporation, an independent energy company, engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. The company operates in Delaware Basin located in southeast New Mexico and west Texas, Eagle Ford located in North America, Anadarko Basin located in western Oklahoma, Williston Basin located in North Dakota, and Powder River Basin located in Wyoming. Devon Energy Corporation was founded in 1971 and is headquartered in Houston, Texas.

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3-Statement Financial Model
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Good quarter Investor Presentation One-Pager? Q2 2026
Net Earnings
$1.9B
N/A
Core Earnings
$1.5B
N/A
Diluted EPS
$2.03
N/A
Adjusted Free Cash Flow
$1.7B
N/A
What Went Right
  • Beat Q2 guidance on every metric: oil production of 503,000 bpd was 1.6% above midpoint, total production hit top end, operating costs were 2% better and capital was 2.4% below guide.
  • Generated $1.7B adjusted free cash flow with reinvestment rate improved to 43% of cash flow, down from the mid-50s in prior years.
  • Returned more than $1B via dividend, buybacks and debt reduction; completed the 2026 debt reduction target and activated $8B buyback program.
What to Watch
  • Portfolio review creates uncertainty: management declined to comment on rumors and acknowledged the stock has underperformed while the market waits for direction.
  • Gas market risk flagged: Waha was challenged in Q2 and future Gulf Coast price volatility could increase given LNG/power demand and a lack of storage additions.
  • Synergy target not yet flowing through financials; management is sticking with the $1B target despite gross potential well north of $1B.
Management Guidance
  • Q3 2026: oil production 550,000-560,000 bpd; total volumes 1.66-1.69 million boe/d; capital $1.4-$1.5B, the highest quarter of 2026.
  • FY2026: oil production 495,000-505,000 bpd; total volumes roughly 1.4 million boe/d; total capital $4.8-$5.0B.
  • Q4 oil production expected similar or higher vs Q3; initial 2027 views to be provided in November.
  • At least $1.0B annual pre-tax synergies on track by year-end 2027; ~$9B total debt target by year-end 2027 remains achievable.
Investor Lens
The thesis is stronger after this call: Devon beat across production, costs and capital, generated $1.7B adjusted free cash flow and expressed rising confidence in $1B synergies. The main overhang is the portfolio review, with management deliberately not telegraphing asset decisions while the market waits. Once direction is clearer, accelerated buybacks and a capital-efficient 2027 plan could drive a re-rating. Management acknowledged the share-price underperformance and made clear shareholder value creation remains the priority.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Q2 beat across all metrics; $1.7B adjusted free cash flow generated
Revenue
Revenue was not disclosed in the provided call or release. Closest top-line figures were GAAP operating cash flow of $3.7B and adjusted operating cash flow of $2.9B.
Profitability
Net earnings were $1.9B, or $2.03 per diluted share, while core earnings were $1.5B, or $1.57 per diluted share. No YoY comparison was provided, but adjusted free cash flow reached $1.7B for the quarter.
Margins
Operating margin was not disclosed. Total operating costs including GP&T were $8.23 per BOE, 2% better than guidance midpoint; the implied reinvestment rate was 43% of cash flow.
Balance Sheet
Quarter-end liquidity was $4B, including $1.0B cash and a $3.0B undrawn credit facility; total debt stood at $11.4B. Devon retired $250M senior notes and $250M term loan in Q2, plus the remaining $750M term loan in July, completing its 2026 debt reduction target.
Key Risks
Management flagged portfolio-review uncertainty and the drag from rumor-driven share-price volatility. Gas takeaway/basis risk was also discussed, with Waha weakness in Q2 and potential future Gulf Coast volatility from LNG/power demand and limited storage additions.
Outlook
Q3 oil production is guided to 550,000-560,000 bpd with total volumes of 1.66-1.69 million boe/d and capital of $1.4-$1.5B. Full-year oil guidance was tightened to 495,000-505,000 bpd with total capital of $4.8-$5.0B; initial 2027 guidance is expected in November.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-05
Q2 saw strong operational and financial performance, with production and free cash flow exceeding guidance, rapid integration of the Coterra merger, and significant progress on synergies and debt reduction. The company enhanced its Permian position, tightened 2026 guidance, and remains focused on technology-driven efficiency and shareholder returns.
Q1 2026 Q1 2026 2026-05-06
Q1 2026 saw strong free cash flow of $816 million, driven by top-end oil production and capital efficiency. The imminent COTERRA merger will boost scale, with $1B in synergies targeted and a 30% dividend increase planned. AI-driven optimization and robust Delaware Basin activity underpin future growth.
Q4 2025 Q4 2025 2026-02-18
Fourth quarter and full-year 2025 results exceeded expectations, with strong free cash flow, improved capital efficiency, and robust production. The pending Coterra merger is set to deliver $1 billion in annual synergies and enhanced shareholder returns.
Q3 2025 Q3 2025 2025-11-06
Exceeded guidance on all key metrics, generated $820M in Q3 free cash flow, and advanced business optimization, achieving over 60% of a $1B target. Raised 2025 production guidance, reduced capital, and maintained strong liquidity while prioritizing shareholder returns and debt reduction.
Q2 2025 Q2 2025 2025-08-06
Production and capital efficiency exceeded expectations, with 40% of a $1 billion optimization target already achieved. Free cash flow and shareholder returns were strong, and guidance for oil production and capital spending improved, supported by technology and strategic asset moves.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
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Information Sources:
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