Devon Energy Corp (DVN)
OvervaluedFundamental
68
Price
$51.39
Market Cap
$54.86B
Part 1 · What the company is worth
Overview
Devon Energy is an independent oil, natural gas, and natural gas liquids (NGL) exploration, development, and production company founded in 1971. The company operates primarily onshore in the United States across five main asset basins: the Delaware Basin (largest program, oil-rich formations in New Mexico and Texas), the Williston Basin (Bakken and Three Forks in Montana and North Dakota, acquired September 2024), the Powder River Basin in Wyoming, Eagle Ford in south Texas, and the Anadarko Basin in Oklahoma. As of December 31, 2024, Devon operated 7,158 net producing wells across 2.37 million net acres, generating total production of 270 million barrels of oil equivalent (MMBoe) comprised of 127 million barrels of oil, 438 billion cubic feet of natural gas, and 70 million barrels of NGLs.
How it makes money
Devon sells crude oil, natural gas, and NGLs through a combination of short-term contracts (less than one year) and long-term agreements (one year or more), with variable pricing as the predominant mechanism. As of January 2025, approximately 57% of oil sales are short-term/variable pricing, 61% of natural gas sales are short-term/variable, and 68% of NGL sales are short-term/variable. The company realizes commodity prices that reflect NYMEX benchmarks and regional adjustments, with 2024 average realized prices of $73.78/barrel for oil, $0.91/Mcf for natural gas, and $20.20/barrel for NGLs.
Revenue by segment
The largest operating program with 170 MMBoe production in 2024. Operations focus on oil-rich Wolfcamp, Bone Spring, Avalon, and Delaware formations in southeast New Mexico and west Texas. The company allocated approximately 55% of 2025 capital to this segment and operates 15 rigs. Average 2024 production costs were $7.95/Boe with oil prices averaging $74.75/barrel.
Recently expanded through the acquisition of Grayson Mill operations in September 2024. Produces 32 MMBoe from Bakken and Three Forks formations in Montana and North Dakota. Operations use 3 rigs with average 2024 production costs of $11.61/Boe and average oil prices of $69.15/barrel.
Emerging and supporting assets including Powder River Basin (light-oil opportunities in Wyoming with 1 operated rig), Eagle Ford (south Texas oil-weighted operations in DeWitt and Karnes counties with Gulf Coast pricing access), and Anadarko Basin (long-term inventory optionality in western Oklahoma with 2-rig Dow joint venture).
Competitive moat
Cost advantage · NarrowDevon possesses cost advantages through advantaged onshore U.S. asset positions with multi-zone development potential, particularly in the low-cost Delaware Basin where 2024 production costs averaged $7.95/Boe compared to company average of $8.76/Boe. The company benefits from operational scale (7,158 net producing wells across diversified basins), investment-grade credit ratings supporting stable financing, and technology deployment for efficiency. However, these advantages are not durable in the traditional sense; they depend on commodity prices, regulatory access, and continued capital investment. Oil and gas remains a commoditized industry with competition primarily on cost efficiency and reserve replacement, limiting the strength of any competitive moat.
What drives demand
CyclicalDemand for crude oil, natural gas, and NGLs is driven by global economic activity and energy consumption patterns, making Devon's earnings highly cyclical. Demand strengthens during economic expansions and weakens during recessions. Long-term demand is influenced by energy transition policies and renewable energy adoption, which create structural headwinds for fossil fuel producers. Near-term demand is sensitive to geopolitical events affecting global supply, OPEC production decisions, inventory levels, and infrastructure capacity constraints. Natural gas demand is particularly influenced by weather (heating/cooling demand) and industrial activity.
Key risks
- Volatile Oil, Gas and NGL Prices — Crude oil prices have ranged from under $30 to over $120 per barrel over a five-year period; Henry Hub natural gas prices have ranged from $1.50 to $9.50 per MMBtu. Realized revenues and earnings are highly sensitive to these commodity prices, which are influenced by global supply and demand dynamics, geopolitical conflicts, OPEC production decisions, and energy transition policies. Price hedging activities limit downside exposure but also constrain participation in upside price movements.
- Estimates of Oil, Gas and NGL Reserves Are Uncertain — The process of estimating reserves is complex and requires significant judgment in evaluating geological, engineering, and economic data. Reserve estimates are subject to material revision based on changes in commodity prices, development activity, cost variations, and additional drilling results. Substantial declines in reserves could materially impact future production capacity and shareholder returns.
- Subject to Extensive Governmental Regulation — Operations are subject to federal, state, and local regulations governing exploration, development, drilling, hydraulic fracturing, environmental protection, methane emissions, worker safety, and tribal consultation. Approximately 15% of Devon's acreage is located on federal lands subject to additional regulatory constraints. Recent regulatory developments include EPA methane emissions standards finalized in December 2023 and BLM flaring restrictions adopted in 2024. Regulatory changes could increase costs or limit operational capacity.
- Midstream Capacity Constraints and Interruptions — Devon depends on third-party midstream infrastructure for gathering, processing, and transportation of oil, gas, and NGLs. Production interruptions may result from weather events, equipment failures, facility maintenance, regulatory actions, or market disruptions affecting midstream partners. Such interruptions could reduce revenues and disrupt cash flow.
- Limited Control Over Properties Operated by Others — Devon does not operate all of its properties; certain assets are operated by joint venture partners or third parties. The company's ability to influence operational decisions, capital allocation, and cost management on non-operated properties is limited, which may affect production efficiency and financial returns.
The case for
Buyers argue that Devon Energy offers an attractive entry point for value investors seeking exposure to energy infrastructure and commodity cash flows. The company operates a large, diversified portfolio of low-cost onshore U.S. assets with multi-zone development potential, particularly in the highly economic Delaware Basin where production costs average under $8/Boe. Devon maintains a fortress balance sheet with investment-grade credit ratings, providing financial flexibility across commodity cycles. The company has committed to returning cash to shareholders through a growing fixed dividend (increased 10% to $0.22/share in 2024) plus opportunistic share buybacks, creating compelling shareholder returns even at moderate commodity prices. As energy demand from AI data centers and manufacturing growth supports oil and gas prices, Devon's capital-efficient development programs and proved reserve base offer sustainable earnings and dividend growth.
The case against
Sellers fear that Devon's earnings and cash flow are fundamentally vulnerable to commodity price volatility, with the company heavily exposed to global economic slowdowns and energy demand destruction. The long-term energy transition poses an existential risk to fossil fuel demand; major institutional investors increasingly restrict fossil fuel investments, and renewable energy costs continue to decline, potentially accelerating the shift away from hydrocarbons. Devon faces mounting regulatory pressures including EPA methane emissions standards and restrictions on federal lands drilling, which could increase operational costs and limit production capacity. Reserve replacement is uncertain and capital-intensive, and future discoveries may not offset production declines. ESG-driven divestment and carbon-constrained investment frameworks may pressure valuations. At current commodity price levels, the company's dividend and buyback programs, while supporting share price, reduce financial flexibility for navigating potential downturns.
Generated with artificial intelligence on September 21, 2026, shared with all users
Direct competitors
Who this company fights with for the same customers
Generated with artificial intelligence on September 18, 2026, shared with all users
Diamondback is the other large pure-play Permian producer, drilling the same Delaware and Midland Basin rock and selling the same barrels of light shale oil to the same Gulf Coast refiners and exporters.
ConocoPhillips is the largest US independent producer and overlaps with Devon in the Delaware Basin, the Eagle Ford and the Bakken, competing for the same acreage, the same oilfield services and the same buyers of crude.
EOG is a US onshore shale producer with core positions in the Delaware Basin and the Eagle Ford, the same two plays that generate most of Devon's oil volumes.
Occidental is one of the biggest operators in the Permian Basin of west Texas and New Mexico, bidding against Devon for leases and infrastructure capacity in the same counties.
Permian Resources is a Delaware Basin–focused producer whose acreage sits alongside Devon's core position, competing for the same undeveloped land and the same drilling crews.
Ovintiv produces oil and natural gas liquids from the Permian, Anadarko and Montney plays, overlapping directly with Devon's Delaware and Anadarko operations and selling into the same North American markets.
Balance Sheet & Liquidity
Revenue
$19.70B
Trailing 12 months (through 6/30/2026)
Net Income
$3.28B
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$3.12B
Total Equity
$15.53B
Total Liabilities
$16.07B
Current Ratio
0.72
Interest Coverage
-
Debt/EBITDA
1.50
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$32.92
Current Price
$51.39
Margin of Safety
-56.1%
Fair Value Range
$21.40 - $44.44
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
12.21
ROE
17.0%
P/B Ratio
1.35
P/FCF
12.04
Gross Margin
-
ROIC
-
Profitability Radar
Value Creation (Economic Moat)
ROIC
-
WACC
7.0%
ROIC − WACC
-
Fundamental Analysis Criteria
Passed (14)
- P/FCF 12.04
- P/B ratio 1.35
- Debt/equity ratio
- Positive free cash flow
- Debt/EBITDA
- Return on tangible assets
- Low reliance on intangibles
- Price below Graham Number
- ROE 14.9%
- Revenue growth 5Y 28.9%
- Earnings surprise, average 5.0%
- Earnings quality (operating cash flow / net income) 2.61
- Share dilution -0.1%
- Piotroski F-Score 6/9
Failed (6)
- EPS shows upward trend
- EPS CAGR -3.55%
- Price CAGR 0.89%
- CapEx intensity
- Current ratio
- DCF valuation (Overvalued)
Unavailable (7)
- ROIC –
- Gross margin –
- Dividend payout –
- Operating margin –
- Interest coverage
- PEG ratio (needs P/E > 0 and growth > 0)
- Net margin trend (invalid data)
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Clay M. Gaspar | President, CEO & Director | 53 |
| Mr. Jeffrey L. Ritenour CPA | Executive VP & Chief Corporate Development Officer | 52 |
| Mr. J. Larry Nichols | Co-Founder & Chairman Emeritus | 83 |
| Mr. Shannon E. Young III | Executive VP & CFO | 53 |
| Mr. Blake A. Sirgo | Executive Vice President of Operations | 42 |
| Mr. Gregory F. Conaway CPA | VP & Chief Accounting Officer | 50 |
| Mr. Daniel Dennis Guffey C.F.A. | Senior Vice President of Corporate Finance | - |
| Mr. Kevin William Smith | Executive VP & CTO | 39 |
| Ms. Andrea M. Alexander | Senior VP & Chief Administrative Officer | 42 |
| Mr. Christopher Carr | Director of Investor Relations | - |
Audit Risk
3
Board Risk
4
Compensation Risk
2
Shareholder Rights Risk
7
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-02-18
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-08-05
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-10-08
via SEC EDGAR
Income History
via SEC EDGAR
Part 2 · The price and its context
This part shows how the price has behaved, not whether the company is worth owning. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Market Reaction Profile
How much DVN moves, measured on its daily prices.
More volatile than 41% of the tracked stocks (90-day volatility).
- Volatility 30d
- 34.1%
- Volatility 90d
- 32.4%
- Beta vs S&P 500 (1y)
- -0.70Correlation -0.26
- Max drawdown (12m)
- -22.7%
- ATR (14d, % of price)
- 2.93%
Earnings reactions
How DVN moved around its past quarterly results.
Next earnings release
Nov 5, 2026 · In 12 days · Time not known
EPS estimate: 1.31Revenue estimate: $6.9B
What usually happens
- Over the last 12 releases the stock moved a median of 1.4% the next day, up or down.
- Next-day moves: up 6, down 6 (out of 12).
Release history
| Date | When | EPS est. | EPS actual | Surprise | Gap | 1 day | 5 days |
|---|---|---|---|---|---|---|---|
| Aug 4, 2026 | After the close | 1.41 | 1.57 | +11.6% | -0.6% | -4.4% | +3.1% |
| May 5, 2026 | After the close | 1.07 | 1.04 | -2.9% | -6.8% | -8.6% | -8.3% |
| Feb 17, 2026 | After the close | 0.82 | 0.82 | 0.0% | +1.0% | +0.9% | -1.7% |
| Nov 5, 2025 | After the close | 0.94 | 1.04 | +11.2% | +3.0% | +0.3% | +8.9% |
| Aug 5, 2025 | After the close | n/a | n/a | n/a | +2.1% | +0.4% | +3.1% |
| May 6, 2025 | After the close | n/a | n/a | n/a | -0.6% | -1.0% | +12.1% |
| Feb 18, 2025 | After the close | n/a | n/a | n/a | +3.8% | +7.7% | +2.9% |
| Nov 5, 2024 | After the close | n/a | n/a | n/a | +0.9% | +1.7% | -2.5% |
| Aug 6, 2024 | After the close | n/a | n/a | n/a | +3.7% | +2.8% | +6.3% |
| May 1, 2024 | After the close | n/a | n/a | n/a | +1.4% | -0.1% | +0.3% |
| Feb 27, 2024 | After the close | n/a | n/a | n/a | -0.5% | -0.7% | +1.7% |
| Nov 7, 2023 | After the close | n/a | n/a | n/a | -1.3% | -2.5% | +1.0% |
Release dates from SEC 8-K filings.
Updated 10/24/2026
Historical statistics for educational purposes only. They are not forecasts and not investment advice.
Price reaction to the news
Latest news on DVN and what the price did next.
- 10/8/2026PositiveCrescent Energy acquista asset da Devon Energy per 4,2 miliardi di dollari in contanti
- +1 day
- +2.6%
- +3 days
- +2.1%
- 9/23/2026PositivePerché Toms Capital vuole che Devon Energy valuti una vendita
Published while the US market was open: the move of that day cannot be split into before and after the news, so no figure is shown.
- 7/9/2026NegativeKimmeridge Faults Pace of Devon Energy’s Asset-Sale Efforts
Published while the US market was open: the move of that day cannot be split into before and after the news, so no figure is shown.
- 6/10/2026PositiveDevon Energy Stock Jumps After Updated 2026 Outlook
Published while the US market was open: the move of that day cannot be split into before and after the news, so no figure is shown.
- 4/24/2026Positive$1000 Invested In Devon Energy 5 Years Ago Would Be Worth This Much Today
- +1 day
- +0.4%
- +3 days
- +6.9%
- 3/25/2026Positive$100 Invested In Devon Energy 5 Years Ago Would Be Worth This Much Today
- +1 day
- +3.7%
- +3 days
- +6.0%
- 3/16/2026PositiveHeadline no longer in the latest news feed
- +1 day
- +1.4%
- +3 days
- +6.0%
- 3/1/2026PositiveHeadline no longer in the latest news feed
- +1 day
- +3.2%
- +3 days
- 0.0%
Return of the stock minus return of SPY over the same days. A news item close to a price move did not necessarily cause it. Historical data for educational purposes only, not investment advice.
Latest News
Recent headlines for DVN.
- 16d agoPOSITIVECrescent Energy acquista asset da Devon Energy per 4,2 miliardi di dollari in contanti
Devon Energy has agreed to sell its Eagle Ford assets to Crescent Energy for an estimated net purchase price of $3.85 billion in cash. This strategic divestiture allows Devon to focus on its core operations and return capital to shareholders. The transaction is expected to close in the fourth quarter of 2026, subject to customary closing conditions. For investors, this move signals a streamlined business model and a commitment to enhancing shareholder value through capital allocation, potentially boosting confidence in Devon's future performance.
- 16d agoNEUTRALDevon to Sell Shale Oil Assets to Crescent for $4.2 Billon
Devon Energy Corp. has announced an agreement to divest its Eagle Ford shale oil assets in South Texas to Crescent Energy Co. for approximately $4.2 billion. This strategic move by Devon Energy is part of its ongoing portfolio optimization strategy. The sale to Crescent Energy, a KKR & Co.-backed entity, is expected to close in the second quarter of 2027, subject to customary closing conditions. While the divestiture could free up capital for Devon, the market impact will depend on how the proceeds are redeployed and the future performance of Crescent Energy's expanded operations.
- 9/23/2026POSITIVEPerché Toms Capital vuole che Devon Energy valuti una vendita
Devon Energy Corporation shares surged following reports that activist hedge fund Toms Capital Management is urging the oil and gas producer to explore strategic alternatives, including a potential sale. Toms Capital, now a top five shareholder, has escalated investor pressure after Devon's merger with Coterra Energy last May. The stock has gained approximately 30% year-to-date. Toms Capital, working with attorney Alex Spiro, argues that Devon's post-merger portfolio, which includes the Delaware Basin in the Permian, warrants a strategic review. This development suggests potential value unlocking for shareholders through a sale or other strategic actions.
- 7/9/2026NEGATIVEKimmeridge Faults Pace of Devon Energy’s Asset-Sale Efforts
Kimmeridge Energy Management Co. has publicly criticized Devon Energy Corp.'s asset-sale efforts, deeming them too slow following the company's $25 billion acquisition of Coterra Energy Inc. This shareholder activism highlights concerns about capital allocation and strategic execution. Investors may interpret this as a sign of internal friction or a potential drag on future performance if divestments are indeed lagging, impacting Devon's ability to optimize its portfolio and deliver shareholder value.
- 6/10/2026POSITIVEDevon Energy Stock Jumps After Updated 2026 Outlook
Devon Energy Corporation's stock experienced a significant surge following the release of its updated 2026 financial outlook. This positive development comes on the heels of the company's successful completion of its merger with Coterra Energy. The updated guidance, reflecting the combined entity's projected performance, has instilled investor confidence, driving the share price upward. Investors will be closely monitoring the integration progress and the realization of synergies from the merger, which are expected to contribute to future growth and profitability.
- 4/24/2026POSITIVE$1000 Invested In Devon Energy 5 Years Ago Would Be Worth This Much Today
An investment of $1,000 in Devon Energy Corporation five years ago would have yielded a significant return, illustrating the company's strong performance in the energy sector. While specific figures are not provided in the title, the implication of substantial growth suggests that the stock has outperformed many benchmarks over this period. This historical performance indicates robust operational execution, favorable market conditions for oil and gas, and effective capital allocation strategies by the company's management. Investors considering energy stocks might view this as a positive indicator of Devon Energy's potential for future value creation.
- 3/25/2026POSITIVE$100 Invested In Devon Energy 5 Years Ago Would Be Worth This Much Today
An investment of $100 in Devon Energy Corporation five years prior to March 25, 2026, would have yielded a significant return, illustrating the company's strong performance over the period. While specific figures are not provided in the title, such a statement implies substantial capital appreciation and potentially dividend payouts, indicating robust operational success and favorable market conditions for the energy sector. Investors tracking the oil and gas industry would view this as a positive indicator of Devon Energy's strategic execution and its ability to generate shareholder value.