A Business at a Glance
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DEVON ENERGY CORP/DE
DVN
$28.5B
Mkt Cap
$45.04
-0.55%
DEVON ENERGY CORP/DE (DVN) has a current P/E ratio of 10.8, compared to its historical median P/E of 7.4. The stock is currently considered Fair based on its historical valuation range.
DEVON ENERGY CORP/DE (DVN) has a 5-year average return on invested capital (ROIC) of 25.6%. This indicates strong capital allocation and a potential competitive advantage.
DEVON ENERGY CORP/DE (DVN) has a market capitalization of $28.0B. It is classified as a large-cap stock.
Yes, DEVON ENERGY CORP/DE (DVN) pays a dividend with a trailing twelve-month yield of 2.18%. The company also returns capital through share buybacks, with a buyback yield of 2.92%.
Based on historical P/E analysis, DEVON ENERGY CORP/DE (DVN) appears fair. The current P/E of 10.8 is 47% above its historical median of 7.4. The estimated fair value CAGR (P/E method) is 11.8%.
DEVON ENERGY CORP/DE (DVN) operates in the Crude Petroleum & Natural Gas industry, within the Energy sector.
DEVON ENERGY CORP/DE (DVN) reported annual revenue of $17.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
Devon Energy is an independent oil and natural gas exploration and production company operating primarily in the Delaware Basin, Williston Basin, and Eagle Ford, with a portfolio focused on onshore unconventional resources. The company generates revenue through the production and sale of crude oil, natural gas, and natural gas liquids, with oil production representing a significant portion of its output; the business model emphasizes capital efficiency, operational optimization, and disciplined capital allocation to maximize free cash flow generation. Devon's unit economics are characterized by a low breakeven funding level of less than $45 WTI including dividends, reflecting the quality and cost structure of its assets, and the company employs a multi-zone co-development strategy in the Delaware Basin to balance well productivity with extended inventory runway and improved net present value. The company distributes its products through established market channels and has entered into long-term gas sales agreements with power generators, including a seven-year contract with CPV Basin Ranch Energy Center starting in 2028 to supply 65 million cubic feet per day indexed to ERCOT West power prices. Devon's competitive moat derives from its advantaged asset portfolio, particularly the Delaware Basin franchise, combined with a culture of continuous operational improvement, advanced technology adoption, and disciplined execution that have consistently delivered capital and production outperformance. The company serves energy markets across North America and maintains an investment-grade balance sheet with strong liquidity to support reinvestment and shareholder returns.
【Merger synergy acceleration ahead】 Management expects the recently closed Coterra merger to unlock substantial value through $1 billion in annual pre-tax run-rate synergies by year-end 2027, with integration teams already identifying 156 distinct value capture opportunities and signaling confidence that the synergy target represents a floor rather than a ceiling. The combined entity is positioned to generate significantly more free cash flow going forward, supporting an accelerated capital return program including a 31% dividend increase and a new share repurchase authorization exceeding $5 billion. Production is expected to step up from current levels while the cost structure remains well controlled, and management anticipates providing combined full-year guidance in mid-June following board alignment on the company's strategic plan. The commodity backdrop is described as meaningfully stronger than originally underwritten, creating a favorable environment for cash generation and shareholder value delivery, though the company maintains a disciplined approach to capital planning given ongoing macroeconomic uncertainty.
| Metric | Target | Period |
|---|---|---|
| Free cash flow | $816 million | Q4 FY2025 |
| Synergies (annual pre-tax run-rate) | $1 billion | Year-end 2027 |
| Dividend increase | 31% | Post-merger close (FY2026) |
| Share repurchase authorization | more than $5 billion | Post-merger close (FY2026) |
| Full-year 2026 production (standalone Devon) | approximately 845,000 BOE per day | FY2026 |
| Oil production 2026 (standalone Devon) | approximately 388,000 bbl per day | FY2026 |
| Capital investment 2026 (standalone Devon) | $3.5 billion-$3.7 billion | FY2026 |
| Share repurchases 2026 (standalone Devon) | $200 million-$300 million per quarter | FY2026 |
Free cash flow (Q4 FY2025): “Combined, these efforts translated into $816 million of free cash flow in the quarter, demonstrating the capital efficiency of our program and positioning us to return substantial value to shareholders.”
Synergies (annual pre-tax run-rate) (Year-end 2027): “In total, we expect to deliver $1 billion in annual pre-tax run rate synergies by year-end 2027.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 16.5B | 17.2B | 15.9B | 15.3B | 19.2B | 12.2B |
| Net Income | 2.3B | 2.6B | 2.9B | 3.7B | 6.0B | 2.8B |
| EPS | $3.60 | $4.17 | $4.56 | $5.84 | $9.12 | $4.19 |
| Free Cash Flow | 2.9B | 3.1B | 3.0B | 2.7B | 6.0B | 2.9B |
| ROIC | 0.0% | 13.0% | 15.7% | 23.5% | 41.8% | 33.9% |
| Gross Margin | - | - | - | - | - | - |
| Debt/Equity | 0.61 | 0.62 | 0.65 | 0.55 | 0.60 | 0.70 |
| Dividends/Share | $0.98 | $0.98 | $1.48 | $2.90 | $5.11 | $1.96 |
| Operating Income | 0 | 3.9B | 4.1B | 4.9B | 8.1B | 3.3B |
| Operating Margin | 0.0% | 22.8% | 25.5% | 32.4% | 42.5% | 26.8% |
| ROE | 14.7% | 17.6% | 21.8% | 32.2% | 59.0% | 46.3% |
| Shares Outstanding | 621M | 634M | 634M | 640M | 661M | 671M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 20.6B | 13.1B | 6.8B | 6.5B | 8.9B | 6.2B | 4.8B | 12.2B | 19.2B | 15.3B | 15.9B | 17.2B | 16.5B |
| Gross Margin | 26.9% | N/A | -32.0% | 26.6% | 44.6% | 5.6% | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 847M | 1.2B | 733M | 645M | 574M | 475M | 338M | 391M | 395M | 408M | 500M | 492M | 487M |
| EBIT | 4.7B | -20.7B | -2.9B | 1.1B | 3.4B | -125M | -3.0B | 3.3B | 8.1B | 4.9B | 4.1B | 3.9B | 0 |
| Op. Margin | 22.8% | -157.7% | -42.9% | 16.7% | 38.1% | -2.0% | -61.5% | 26.8% | 42.5% | 32.4% | 25.5% | 22.8% | 0.0% |
| Net Income | 1.6B | -12.9B | -1.1B | 898M | 3.1B | -355M | -2.7B | 2.8B | 6.0B | 3.7B | 2.9B | 2.6B | 2.3B |
| Net Margin | 7.7% | -98.1% | -15.6% | 13.8% | 34.4% | -5.7% | -55.5% | 23.0% | 31.5% | 24.5% | 18.1% | 15.4% | 13.7% |
| Non-Recurring | 3.1B | 1.4B | 2.6B | 236M | 531M | 132M | 50M | 426M | 44M | 30M | -2.0M | 343M | 343M |
| Returns on Capital | |||||||||||||
| ROIC | 9.6% | -51.1% | -5.6% | 6.0% | 20.8% | -3.0% | -31.0% | 33.9% | 41.8% | 23.5% | 15.7% | 13.0% | 0.0% |
| ROE | 7.6% | -90.2% | -13.8% | 10.2% | 33.2% | -4.7% | -61.7% | 46.3% | 59.0% | 32.2% | 21.8% | 17.6% | 14.7% |
| ROA | 3.4% | -32.1% | -3.6% | 3.0% | 12.3% | -2.1% | -22.7% | 18.2% | 27.2% | 15.7% | 10.5% | 8.5% | 7.0% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 6.0B | 4.9B | 1.5B | 2.9B | 1.6B | 2.0B | 1.5B | 4.9B | 8.5B | 6.5B | 6.6B | 6.7B | 6.4B |
| Free Cash Flow | -481M | 3.8B | 651M | 2.9B | 1.5B | 2.0B | 311M | 2.9B | 6.0B | 2.7B | 3.0B | 3.1B | 2.9B |
| Owner Earnings | 2.5B | 632M | -295M | 1.8B | 218M | 431M | 76M | 2.6B | 6.2B | 3.9B | 3.2B | 3.0B | 2.7B |
| CapEx | 6.5B | 1.1B | 849M | 44M | 55M | 31M | 1.2B | 2.0B | 2.5B | 3.9B | 3.6B | 3.6B | 3.5B |
| Maint. CapEx | 3.3B | 4.0B | 1.6B | 1.0B | 1.2B | 1.5B | 1.3B | 2.2B | 2.2B | 2.6B | 3.3B | 3.6B | 3.6B |
| Growth CapEx | 3.1B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 319M | 1.3B | 390M | 0 | 0 |
| D&A | 3.3B | 4.0B | 1.6B | 1.0B | 1.2B | 1.5B | 1.3B | 2.2B | 2.2B | 2.6B | 3.3B | 3.6B | 3.6B |
| CapEx/OCF | 108.0% | 20.6% | 109.4% | 2.1% | 3.5% | 93.5% | 78.8% | 40.6% | 29.8% | 59.3% | 55.2% | 53.5% | 54.4% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 386M | 396M | 221M | 127M | 149M | 140M | 257M | 1.3B | 3.4B | 1.9B | 937M | 619M | 611M |
| Dividend Yield | 1.0% | 1.3% | 0.9% | 0.4% | 0.6% | 0.9% | 3.5% | 8.6% | 9.7% | 6.3% | 3.5% | 2.9% | 2.2% |
| Share Buybacks | 0 | 0 | 0 | 0 | 3.0B | 1.8B | 38M | 589M | 718M | 979M | 1.1B | 1.1B | 818M |
| Buyback Yield | N/A | N/A | N/A | N/A | 36.6% | 24.8% | 0.9% | 2.4% | 2.0% | 3.5% | 5.5% | 4.6% | 2.9% |
| Stock-Based Comp | 163M | 244M | 203M | 126M | 137M | 115M | 88M | 99M | 88M | 93M | 99M | 99M | 91M |
| Debt Repayment | 7.2B | 2.6B | 2.5B | 2.1B | 922M | 162M | 0 | 1.2B | 0 | 242M | 472M | 485M | 485M |
| Balance Sheet | |||||||||||||
| Net Debt | 10.7B | 11.3B | 8.2B | 4.2B | 2.0B | 2.9B | 2.3B | 4.4B | 5.4B | 5.8B | 8.6B | 8.3B | 7.6B |
| Cash & Equiv. | 1.5B | 2.3B | 1.9B | 2.6B | 2.4B | 1.5B | 2.0B | 2.1B | 1.3B | 853M | 811M | 1.4B | 1.8B |
| Long-Term Debt | 9.8B | 12.1B | 10.2B | 6.7B | 4.3B | 4.3B | 4.3B | 6.5B | 6.2B | 5.7B | 8.4B | 7.4B | 7.4B |
| Debt/Equity | 0.57 | 1.94 | 1.23 | 0.74 | 0.48 | 0.74 | 1.49 | 0.70 | 0.60 | 0.55 | 0.65 | 0.62 | 0.61 |
| Interest Coverage | 8.8 | -36.7 | -15.2 | 6.0 | 34.6 | -0.5 | -11.5 | 8.4 | 22.0 | 13.4 | 10.1 | 7.9 | 7.9 |
| Equity | 21.5B | 7.0B | 8.3B | 9.3B | 9.2B | 5.8B | 2.9B | 9.3B | 11.2B | 12.1B | 14.5B | 15.5B | 15.4B |
| Total Assets | 50.6B | 29.7B | 28.7B | 30.2B | 19.6B | 13.7B | 9.9B | 21.0B | 23.3B | 24.5B | 30.5B | 31.6B | 32.5B |
| Total Liabilities | 7.9B | 18.7B | 16.0B | 16.1B | 10.4B | 7.8B | 6.9B | 11.6B | 12.0B | 12.3B | 15.8B | 16.1B | -212M |
| Intangibles | 533M | 690M | 1.6B | 1.5B | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | 16.6B | 1.8B | -69M | 702M | 3.6B | 3.1B | 208M | 1.7B | 4.3B | 6.2B | 8.2B | 10.2B | 10.2B |
| Working Capital | 563M | 726M | 1.2B | 1.5B | 2.2B | 1.9B | 1.8B | 1.2B | 786M | 208M | 118M | -80M | 28M |
| Current Assets | 6.5B | 4.0B | 3.8B | 4.8B | 4.4B | 3.9B | 3.3B | 4.2B | 3.9B | 3.2B | 3.4B | 4.0B | 4.8B |
| Current Liabilities | 5.9B | 3.3B | 2.6B | 3.3B | 2.2B | 1.9B | 1.4B | 3.1B | 3.1B | 2.9B | 3.3B | 4.1B | 4.7B |
| Per Share Data | |||||||||||||
| EPS | 1.96 | -15.86 | -1.05 | 0.85 | 3.05 | -0.45 | -3.56 | 4.19 | 9.12 | 5.84 | 4.56 | 4.17 | 3.60 |
| Owner EPS | 3.07 | 0.78 | -0.29 | 1.68 | 0.22 | 0.54 | 0.10 | 3.94 | 9.40 | 6.09 | 5.12 | 4.76 | 4.42 |
| Book Value | 26.48 | 8.67 | 8.19 | 8.76 | 9.14 | 7.27 | 3.83 | 13.80 | 16.89 | 18.84 | 22.85 | 24.51 | 24.84 |
| Cash Flow/Share | 7.35 | 6.02 | 1.48 | 2.75 | 1.58 | 2.56 | 1.94 | 7.30 | 12.90 | 10.22 | 10.40 | 10.59 | 9.43 |
| Dividends/Share | 0.47 | 0.49 | 0.22 | 0.12 | 0.15 | 0.18 | 0.34 | 1.96 | 5.11 | 2.90 | 1.48 | 0.98 | 0.98 |
| Shares Out. | 813.3M | 813.1M | 1.0B | 1.1B | 1.0B | 797.8M | 752.8M | 671.4M | 661.3M | 640.2M | 634.4M | 633.6M | 621.0M |
| Valuation | |||||||||||||
| P/E Ratio | 10.6 | N/A | N/A | 17.5 | 2.6 | N/A | N/A | 8.7 | 5.9 | 7.4 | 6.7 | 8.6 | 12.5 |
| P/FCF | N/A | 4.7 | 50.7 | 10.9 | 10.6 | 7.4 | 28.7 | 8.4 | 6.0 | 10.3 | 6.5 | 7.2 | 9.6 |
| EV/EBIT | 5.7 | N/A | N/A | 14.1 | 2.0 | N/A | N/A | 8.8 | 5.0 | 6.7 | 6.7 | 7.7 | N/A |
| Price/Book | 0.8 | 1.3 | 2.0 | 1.7 | 0.9 | 1.3 | 1.5 | 2.6 | 3.2 | 2.3 | 1.3 | 1.5 | 1.8 |
| Price/Sales | 1.0 | 1.1 | 1.2 | 1.6 | 1.5 | 1.2 | 0.8 | 1.3 | 1.8 | 1.9 | 1.7 | 1.2 | 1.7 |
| FCF Yield | -2.8% | 42.3% | 3.9% | 18.3% | 18.9% | 27.0% | 7.0% | 11.9% | 16.8% | 9.6% | 15.4% | 13.8% | 10.5% |
| Market Cap | 17.0B | 9.0B | 16.5B | 15.7B | 8.1B | 7.5B | 4.5B | 24.5B | 35.6B | 27.6B | 19.2B | 22.6B | 28.0B |
| Avg. Price | 45.59 | 36.57 | 25.11 | 26.72 | 26.57 | 18.90 | 9.76 | 22.84 | 52.62 | 46.24 | 41.98 | 33.50 | 45.04 |
| Year-End Price | 41.42 | 22.03 | 32.64 | 29.67 | 16.10 | 18.69 | 11.85 | 36.47 | 53.91 | 43.01 | 30.35 | 35.67 | 45.04 |
DEVON ENERGY CORP/DE passes 5 of 9 quality checks, suggesting mixed fundamentals.
DEVON ENERGY CORP/DE trades at 10.8x trailing earnings, compared to its 15-year median P/E of 7.4x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 9.0x vs a median of 9.4x. The company's 5-year average ROIC is 25.6%. Total shareholder yield (dividends + buybacks) is 5.1%. At current prices, the estimated annualized return to fair value is +32.1%.
DEVON ENERGY CORP/DE (DVN) has a net profit margin of 15.4%. This is a healthy margin.
DEVON ENERGY CORP/DE (DVN) generated $3.1 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
DEVON ENERGY CORP/DE (DVN) has a debt-to-equity ratio of 0.62. This indicates moderate leverage.
DEVON ENERGY CORP/DE (DVN) reported earnings per share (EPS) of $4.17 in its most recent fiscal year.
DEVON ENERGY CORP/DE (DVN) has a return on equity (ROE) of 17.6%. This indicates the company generates strong returns for shareholders.
The Ledger Terminal provides 19 years of financial data for DEVON ENERGY CORP/DE (DVN), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
DEVON ENERGY CORP/DE (DVN) has a book value per share of $24.51, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects the recently closed Coterra merger to unlock substantial value through $1 billion in annual pre-tax run-rate synergies by year-end 2027, with integration teams already identifying 156 distinct value capture opportunities and signaling confidence that the synergy target represents a floor rather than a ceiling. The combined entity is positioned to generate significantly more free cash flow going forward, supporting an accelerated capital return program including a 31% dividend increase and a new share repurchase authorization exceeding $5 billion. Production is expected to step up from current levels while the cost structure remains well controlled, and management anticipates providing combined full-year guidance in mid-June following board alignment on the company's strategic plan. The commodity backdrop is described as meaningfully stronger than originally underwritten, creating a favorable environment for cash generation and shareholder value delivery, though the company maintains a disciplined approach to capital planning given ongoing macroeconomic uncertainty.
Based on recent SEC filings and earnings calls, DEVON ENERGY CORP/DE (DVN) has provided the following forward guidance: Free cash flow: $816 million (Q4 FY2025); Synergies (annual pre-tax run-rate): $1 billion (Year-end 2027); Dividend increase: 31% (Post-merger close (FY2026)); Share repurchase authorization: more than $5 billion (Post-merger close (FY2026)); Full-year 2026 production (standalone Devon): approximately 845,000 BOE per day (FY2026), plus 3 additional metrics.
Dividend increase (Post-merger close (FY2026)): “Following the expected close of the Devon and Coterra merger and pending board approval, we plan to raise our fixed quarterly dividend by another 31%, reflecting our strong confidence in the combined company's ability to capture synergies and to deliver an enhanced cash return profile to shareholders.”
Share repurchase authorization (Post-merger close (FY2026)): “Following the merger close and with board approval, we anticipate a new share repurchase authorization of more than $5 billion, providing significant capacity to deliver strong per share growth over the next several years.”
Full-year 2026 production (standalone Devon) (FY2026): “We intend to maintain consistent activity levels to keep production around 845,000 BOE per day, with oil production at approximately 388,000 bbl per day.”
Oil production 2026 (standalone Devon) (FY2026): “We intend to maintain consistent activity levels to keep production around 845,000 BOE per day, with oil production at approximately 388,000 bbl per day.”
Capital investment 2026 (standalone Devon) (FY2026): “To support this production profile in 2026, we anticipate capital investment of $3.5 billion-$3.7 billion.”
Share repurchases 2026 (standalone Devon) (FY2026): “We'll continue to target share repurchases of $200 million-$300 million per quarter and will retain free cash flow beyond share repurchases on the balance sheet to efficiently reduce net leverage.”
No recent press releases.