Devon Energy is a dirt cheap free-cash-flow machine. Crude oil prices have bounced around quite a bit this year. They were recently around $75 per barrel, which is about 5% higher than they began the year. It's a great price point for most oil companies, which can produce a lot of cash at that level. That's certainly the case with Devon Energy (DVN -0.49%). It can produce a gusher of free cash flow at the current price point. Despite that, the oil stock trades at a bottom-of-the-barrel valuation (even more ...

Core Viewpoint - Devon Energy Corporation (DVN) has experienced an 8.1% decline in share price over the past year, contrasting with a 2.5% decline in its industry and a 25.6% growth in the Zacks S&P 500 composite [1] Performance Analysis - Over the last six months, DVN's stock has gained 2.9%, indicating a gradual recovery, while EQT Corporation (EQT) saw an 11.4% decline in share price during the same period [2] Asset Portfolio - Devon Energy has a multi-basin portfolio with high-margin oil and gas assets that possess significant long-term growth potential [3] - The company’s assets can sustain production levels for over 10 years, providing reliable and affordable energy [4] - Devon maintains a diverse commodity mix, balancing exposure to oil, natural gas, and natural gas liquids [4] Cost Management - A low-cost operating structure enhances the company's margins, with efforts to reduce costs by divesting higher-cost assets and bringing lower-cost production assets online [5] Earnings Estimates - The Zacks Consensus Estimate for Devon Energy's earnings per share for 2024 and 2025 has increased by 1.9% and 6.12%, respectively, over the past 60 days, reflecting analysts' growing confidence [6] Capital Return Program - Devon Energy has generated free cash flow for 16 consecutive quarters, utilizing this cash flow to reduce debt, pay dividends, and repurchase shares [8] - As of June 30, 2024, the company repurchased shares worth $2.7 billion and increased its share-repurchase authorization by 67% to $5 billion through mid-2026 [9] Financial Metrics - Devon Energy's trailing 12-month return on assets (ROA) is 14.46%, surpassing the industry average of 9.16%, indicating efficient asset utilization [10] - The current trailing 12-month Enterprise Value/Earnings before Interest Tax Depreciation and Amortization (EV/EBITDA TTM) for Devon is 4.41, compared to the industry average of 7.4, suggesting the shares are trading at a discount [12] Summary - Devon Energy possesses a strong portfolio of high-quality assets that generate free cash flow, strengthen the balance sheet, and enhance shareholder value [14] - The company’s balanced exposure to oil, natural gas, and NGL production adds to its competitive advantage [14] - This may represent a favorable entry point for investors, as the stock is trading at a discount with rising earnings estimates and strong ROA [15]

As the market appears to be entering a new regime with potential rate cuts on the horizon, investors might find it advantageous to look into undervalued stocks with bullish ratings from analysts. With capital flows and liquidity expected to rise, these stocks could benefit and offer promising opportunities. Here's a closer look at three such stocks: Get General Motors alerts: Attractive Valuation: Devon Energy Boasts a P/E Ratio of 8.53 Devon Energy MarketRank™ Stock Analysis Overall MarketRank™ 4.98 out of ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies. Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these ...

A more attractive valuation and impressive operational performance make this stock a better buy than its morefamous peer. ExxonMobil (XOM -0.64%) is a fine and worthy dividend-stock candidate for investors looking for exposure to oil, but it doesn't trade at Devon Energy's (DVN -0.45%) cash-flow valuation. Moreover, while ExxonMobil's stock is up almost 19% this year, Devon's stock is flat this year and presents an excellent value for investors. Here's why. Devon Energy continues to progress Devon Energy's ...

Devon Energy (DVN) - Devon Energy is an upstream energy company with a current dividend yield of 4 4% which is higher than the market average of 1 2% and the energy sector average of 3 1% [3] - The company's oil production reached an all-time high in Q2 2024 and it has increased its full-year production guidance for the second consecutive quarter [2] - Devon Energy's dividend payments are highly variable as they are tied to the company's financial performance which is heavily influenced by energy prices [3] - The company has expanded its portfolio through acquisitions and has at least 10 years' worth of drilling opportunities in its portfolio [2] - Devon Energy's dividend can serve as a hedge against rising real-world energy costs such as gasoline and heating [8] Enterprise Products Partners (EPD) - Enterprise Products Partners is a midstream energy company with a distribution yield of 7 4% and has increased its distribution for 26 consecutive years [4] - The company's cash flows are highly consistent as it charges fees for the use of its infrastructure assets which are less affected by energy price fluctuations [6] - Enterprise Products Partners covers its distribution by 1 7 times with distributable cash flow making it a reliable choice for high-yield investors [4] - The company's business model is designed around consistency and it can afford to pay large distributions through the entire energy cycle [6] - Growth for Enterprise Products Partners comes from rate increases new assets and acquisitions though the growth opportunity is modest [7] Comparison - Devon Energy's dividend is more volatile due to its dependence on energy prices while Enterprise Products Partners offers a more stable and reliable income stream [3][6] - Devon Energy is an upstream producer directly impacted by energy prices whereas Enterprise Products Partners is a midstream player with a fee-based revenue model [5][6] - For investors seeking a hedge against rising energy costs Devon Energy may be suitable but for those prioritizing consistent income Enterprise Products Partners is the better choice [8]

Devon Energy expects its Grayson Mill deal to pay big dividends next year. Devon Energy (DVN -1.52%) has struck out on several potential acquisition opportunities over the past year. However, the company finally found a deal to its liking in July, agreeing to buy Grayson Mill Energy for $5 billion. The highly accretive transaction is a strong strategic fit for the oil company. The oil producer is working to close the deal by the end of the third quarter. Given that timing, it should provide the oil stock wi ...

bjdlzx Devon Energy (NYSE:DVN) has followed the price of WTI crude oil for the last several quarters. Both oil the commodity and DVN shares have traded largely sideways since the 2022 pop and drop in the Energy sector. The $28 billion market cap Oil and Gas Exploration and Production company is set to grow earnings in the out year with ongoing revenue gains. For shareholders, the management team is committed to returning capital via dividends and buybacks, while its free cash flow is very strong. What's mor ...

grandriver Introduction Energy has been a huge part of my research since the pandemic. That is mainly due to my belief that the sector benefits from strong secular tailwinds, including peak production growth in U.S. shale, long-term demand tailwinds, and a very attractive valuation of the entire sector. Although I promise readers that I will keep a balanced coverage mix, energy will remain a cornerstone of my research. This includes Devon Energy (NYSE:DVN), a stock that has been brought up a lot by readers ...

Devon Energy's dividends look poised to grow. Devon Energy (DVN -0.11%) stock gained massive popularity among income investors after it launched the oil industry's first fixed-plus-variable dividend policy in 2021. Every time crude oil prices rise, so does Devon's dividend payout, making it one of the most intriguing dividend stocks in the energy sector. Here's how you can earn $1,000 in annual dividend income from this oil stock. Devon pays a fixed dividend every quarter, plus a variable dividend of up to ...