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Devon Energy Corporation (DVN) Stock

Devon Energy Corporation Stock Details, Movements and Public Alerts

Devon Energy Corporation (DVN): The $23 Billion Permian Powerhouse Yielding 3.56% Plus Variable Dividends

Under CEO Rick Muncrief's leadership since 2020, Devon Energy has transformed from diversified E&P operator into focused Permian pure-play following WPX Energy merger. Muncrief's strategic vision: concentrate capital on Tier 1 Delaware Basin acreage (southwest Permian offering superior well economics), maintain capital discipline limiting production growth to 5% annually, and return excess cash flow via fixed-plus-variable dividend framework introduced in 2021. Devon's Delaware Basin position includes 350,000 net acres in core Eddy/Lea counties producing at industry-low $30/barrel breakeven costs, while recent Grayson Mill acquisition added high-graded inventory extending drilling runway. The company's capital allocation model—50% free cash flow returned quarterly via variable dividend—creates oil price leverage for shareholders while balance sheet strength (1.5x debt/EBITDA) provides downside protection during commodity downturns.

52-Week Range

$38.23 - $25.37

-5.36% from high · +42.61% from low

Avg Daily Volume

10,433,116

Latest volume

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

9.07

Below market average

Forward P/E

10.31

Earnings expected to decline

PEG Ratio

14.90

Potentially overvalued

Price to Book

1.53

EV/EBITDA

3.98

EPS (TTM)

$4.14

Price to Sales

1.44

Beta

0.67

Less volatile than market

How is DVN valued relative to its earnings and growth?
Devon Energy Corporation trades at a P/E ratio of 9.07, which is below the market average of approximately 20. This lower valuation could indicate the market has modest growth expectations, or it might represent an undervalued opportunity if the fundamentals are strong. Looking ahead, the forward P/E of 10.31 is higher than the current P/E, indicating analysts expect earnings to decline over the next year. The PEG ratio of 14.90 indicates a premium valuation even accounting for growth.
What is DVN's risk profile compared to the market?
With a beta of 0.67, Devon Energy Corporation is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 1.53 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

16.40%

Operating Margin

24.20%

EBITDA

$7.67B

Return on Equity

18.60%

Return on Assets

8.02%

Revenue Growth (YoY)

7.10%

Earnings Growth (YoY)

-16.20%

How profitable and efficient is DVN's business model?
Devon Energy Corporation achieves a profit margin of 16.40%, meaning it retains $16.40 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 24.20% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 18.60% and ROA at 8.02%, the company generates strong returns on invested capital.
What are DVN's recent growth trends?
Devon Energy Corporation's revenue grew by 7.10% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings decreased by 16.20% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against OIL & GAS E&P industry averages for proper context.

Dividend Information

Dividend Per Share

$0.94

Dividend Yield

2.45%

Ex-Dividend Date

Dec 15, 2025

Dividend Date

Dec 30, 2025

What dividend income can investors expect from DVN?
Devon Energy Corporation offers a dividend yield of 2.45%, paying $0.94 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Dec 15, 2025.
How reliable is DVN's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Devon Energy Corporation pays $0.94 per share in dividends against earnings of $4.14 per share, resulting in a payout ratio of 22.71%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for Dec 30, 2025.

Company Size & Market

Market Cap

$23.8B

Revenue (TTM)

$16.55B

Revenue/Share (TTM)

$25.89

Shares Outstanding

627.30M

Book Value/Share

$24.40

Asset Type

Common Stock

What is DVN's market capitalization and position?
Devon Energy Corporation has a market capitalization of $23.8B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 627.30M shares outstanding, the company's ownership is relatively concentrated. As a participant in the OIL & GAS E&P industry, it competes with other firms in this sector.
How does DVN's price compare to its book value?
Devon Energy Corporation's book value per share is $24.40, while the current stock price is $36.18, resulting in a price-to-book (P/B) ratio of 1.48. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$45.10

24.65% upside potential

Analyst Recommendations

Strong Buy

6

Buy

16

Hold

9

Sell

0

Strong Sell

0

How reliable are analyst predictions for DVN?
31 analysts cover DVN with 71% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $45.10 implies 24.7% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on DVN?
Current analyst recommendations:6 Strong Buy, 16 Buy, 9 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Dec 13, 2025, 08:24 AM

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Devon Energy Corporation (DVN) Stock Analysis 2025: Complete Investment Guide

When Rick Muncrief became Devon's CEO in early 2020, oil prices crashed to negative territory as COVID lockdowns destroyed demand. Muncrief's response defined Devon's transformation: merge with WPX Energy creating Permian-focused company, slash costs to $30 breakeven enabling profitability below $50 oil, and launch variable dividend framework aligning shareholder returns with cash generation. Four years later, Devon generates $4+ billion annual free cash flow at $75 oil while distributing over $2 billion annually through fixed dividend (3.56% yield) plus quarterly variable payments tied to cash flow. For income investors seeking energy exposure, Devon's shareholder return model provides oil price upside participation through variable dividends while fixed component offers downside income stability.

Business Model & Competitive Moat

Devon generates revenue through crude oil (70% of production), natural gas liquids, and natural gas sales from onshore U.S. unconventional resources. The company's asset base concentrates 85%+ of capital in Delaware Basin (Permian sub-basin) where multi-zone horizontal drilling targets Wolfcamp, Bone Spring, and Avalon formations. Devon's competitive moats include tier-one acreage quality (core Delaware position offering $30 breakeven vs. $45 industry average), operational scale (650K BOE/day enabling service cost leverage), technical expertise in horizontal drilling/completion optimization, and financial discipline (variable dividend framework forcing capital allocation rigor). Unlike legacy oil majors with expensive offshore/international projects, Devon's land-based shale assets offer flexibility—wells drilled and completed within months, production shut-in capability during price crashes.

Financial Performance

  • •Revenue: $14 billion at $75 WTI oil prices, highly sensitive to commodity price moves
  • •Production: 650K BOE/day (70% oil) growing modestly at 5% annually through capital efficiency
  • •Breakeven: $30/barrel cash breakeven on Delaware wells, industry-leading cost structure
  • •Free Cash Flow: $4B+ at $75 oil, of which $2B+ returned via fixed/variable dividends
  • •Valuation: 7x P/E reflects energy sector discount despite best-in-class capital returns

Growth Catalysts

  • •Oil Price Recovery: Every $5 increase in WTI adds ~$500M annual free cash flow and variable dividend
  • •Delaware Inventory Depth: 15+ years drilling locations in core acreage at current activity levels
  • •Capital Efficiency Gains: Longer laterals, improved completions reducing costs per BOE produced
  • •M&A Opportunities: Consolidating fragmented Permian operators adding scale and inventory
  • •Export Infrastructure: LNG export growth supporting natural gas pricing (30% of production)

Risks & Challenges

  • •Oil Price Volatility: Revenue/earnings highly sensitive to WTI pricing beyond Devon's control
  • •Energy Transition Headwinds: Peak oil demand concerns pressuring long-term valuations despite near-term supply tightness
  • •Production Decline Rates: Shale wells decline 60-70% in first year requiring continuous drilling capex
  • •Regulatory Risk: Federal policy changes (drilling permits, emissions rules) could increase costs
  • •Variable Dividend Cut Risk: Commodity price crash would eliminate variable component (50%+ of total payout)

Competitive Landscape

Devon competes in the Permian Basin against majors (ExxonMobil, Chevron via PDC acquisition), independents (ConocoPhillips, EOG Resources, Pioneer Natural Resources/ExxonMobil), and pure-play Permian operators (Diamondback Energy, Occidental Petroleum). Devon's competitive position: top-5 Permian producer with superior capital efficiency versus legacy majors while larger scale than pure-play independents. ConocoPhillips and EOG Resources represent closest comparables—disciplined capital allocators with variable dividend frameworks and Permian concentration. Devon differentiates through 100% U.S. onshore focus (versus ConocoPhillips' Alaska/international assets) and pure Permian exposure (versus EOG's Eagle Ford diversification). The Permian consolidation wave—ExxonMobil acquiring Pioneer, Chevron buying Hess, ConocoPhillips taking Marathon's Permian assets—validates asset quality while creating larger competitors with capital advantages. Devon's defense: maintain lowest-cost position through operational excellence, avoid growth-for-growth's-sake, and sustain shareholder return discipline.

Who Is This Stock Suitable For?

Perfect For

  • ✓Income investors seeking energy exposure with 3.56% base yield plus variable dividends
  • ✓Value investors attracted to 7x P/E with $4B+ free cash flow generation
  • ✓Energy sector allocators wanting Permian pure-play with capital discipline
  • ✓Inflation hedging portfolios (oil prices correlate with inflation)

Less Suitable For

  • ✗ESG investors avoiding fossil fuel exposure (oil & gas E&P)
  • ✗Risk-averse portfolios (commodity price volatility creates earnings swings)
  • ✗Growth investors seeking revenue expansion (5% production growth caps upside)
  • ✗Long-term buy-and-hold (energy transition uncertainty beyond 10-year horizon)

Investment Thesis

Devon Energy merits a BUY rating for value/income investors seeking energy exposure with shareholder return discipline. The 7x P/E valuation—40% discount to S&P 500—prices in significant oil demand pessimism despite near-term supply/demand tightness. Rick Muncrief's capital allocation framework—fixing production growth at 5% while returning 50% free cash flow—demonstrates rare discipline in boom-bust oil industry. At $75 oil, Devon generates $4+ billion annual free cash flow supporting $1 billion fixed dividend (3.56% yield) plus ~$1.5 billion variable payments (additional 6-7% yield)—total return approaching 10%. The Delaware Basin asset base provides operational leverage: every $5 WTI increase adds ~$500M FCF and proportional variable dividend boost. Near-term catalyst: oil supply tightness from OPEC discipline and U.S. production discipline could push WTI to $85-90, expanding variable dividend 30-40%. Risk management critical: Devon works at $75 oil assumptions but falls dramatically if oil crashes below $55 (eliminating variable dividend). This is cyclical value play requiring 3-5 year horizon and position sizing discipline (3-5% maximum allocation).

Conclusion

Position as 3-5% allocation in energy/value portfolios. Devon typically trades at 6-10x P/E based on oil price outlook; current 7x fair at $75 oil. Consider accumulating below 6x P/E when energy faces broad selling, maintaining strict position limits given commodity exposure. The combination of Permian asset quality, shareholder return discipline, and depressed valuation creates favorable asymmetry if oil remains range-bound $70-85 over next 2-3 years.
Bull Case
$65 (30% upside)
Base Case
$55 (10% upside)
Bear Case
$38 (24% downside)

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