The two oil companies make for a fascinating comparison. High-yielding Vitesse Energy (VTS 0.55%) and Devon Energy (DVN -1.20%) are connected in that Vitesse has minority interests in Devon-operated wells in the Williston Basin of North Dakota and Montana (Bakken Formation). However, they have different business models, risk profiles, and capital allocation priorities. Here's a look at what each offers and which might be the better stock overall.Vitesse Energy: A high-yield (8.8%) energy stockThe $725 milli ...

OKLAHOMA CITY, March 05, 2025 (GLOBE NEWSWIRE) -- Devon Energy Corp. (NYSE: DVN) announced today that John Krenicki Jr. is retiring from the company's board of directors at the end of his current term and will not stand for re-election at the company’s annual meeting of stockholders, which is scheduled for June 4, 2025. Mr. Krenicki plans to focus on his full-time responsibilities at CD&R, a private equity firm where he currently serves as Vice Chairman. "John Krenicki has served with distinction on Devon’s ...

Core Viewpoint - Crude oil prices have remained stable around $70, supported by OPEC supply decisions, economic growth, and geopolitical concerns, making it an ideal environment for top oil stocks to generate cash flow [1][11]. Company Summaries ConocoPhillips - ConocoPhillips has transformed into a low-cost oil producer, selling higher-cost assets and acquiring lower-cost resources, culminating in a $22.5 billion acquisition of Marathon Oil, adding over 2 billion barrels of resources with an average supply cost below $30 [3][4]. - The company plans to invest $12.9 billion in capital projects while returning $10 billion to shareholders through dividends and share repurchases, an increase from $9.1 billion returned last year [4][5]. Devon Energy - Devon Energy has adopted a similar strategy to ConocoPhillips, focusing on low-cost operations and recently acquiring Grayson Mill Energy, enhancing its position in the Williston Basin [6]. - The company expects to invest up to $4 billion this year, generating over $3 billion in free cash flow at $70 oil, with plans to return up to 70% of this cash flow to shareholders, prioritizing share repurchases [7][8]. EOG Resources - EOG Resources has built a low-cost production model, controlling over 10 billion barrels of oil equivalent, with an average after-tax return above 55% at $45 oil [9]. - The company estimates generating $4.7 billion in free cash flow at $70 oil after a $6.2 billion capital investment, planning to return over 100% of its free cash flow to investors through dividends and share repurchases [10]. Industry Outlook - ConocoPhillips, Devon Energy, and EOG Resources are positioned to thrive in the current oil price environment, generating substantial cash flow to support capital programs and return excess cash to shareholders, indicating strong potential for above-average total returns [11].

Group 1: Kenvue - Kenvue is trading at a discount since its spin-off from Johnson & Johnson in summer 2023, presenting a potential value investment opportunity [3] - The company needs to improve performance in its skin health and beauty segment, while maintaining growth in self-care and essential health segments [4] - Recent marketing investments have led to a 2.6% organic sales growth in the skin health and beauty segment in Q4, indicating potential for further growth in 2025 [5] - Kenvue's current dividend yield is 3.5%, enhancing its attractiveness for value investors [5] Group 2: 3M - 3M has faced disappointing growth but is undergoing a recovery with new management focusing on restructuring and operational improvements [6][7] - The restructuring includes spinning off the healthcare business, cutting unprofitable product lines, and enhancing go-to-market strategies, which have led to margin expansion [7][9] - Planned operational improvements aim to enhance profitability and set the stage for long-term growth, appealing to value investors [9] Group 3: Devon Energy - Devon Energy is positioned well in the oil and natural gas market, with management forecasting at least $3 billion in free cash flow if oil averages $70 per barrel in 2025 [11] - This free cash flow represents approximately 12.7% of Devon's market cap of $23.6 billion, indicating strong potential for dividend payments [11] - The company plans to allocate 30% of its free cash flow to reduce long-term debt and invest in share buybacks, while maintaining a fixed dividend of $0.96 per year [12] - Devon's operational improvements and a 15% increase in feet drilled position it well for 2025, making it an attractive value stock if oil prices remain stable [13]

Over the past three months, West Texas Intermediate crude prices have spiked around 15% only to turn around and come back down to a roughly 4% gain. There are supply-and-demand and geopolitical reasons for the price move, but the truth is that this type of volatility isn't uncommon in the energy sector.Here's why that could make ExxonMobil (XOM -0.25%) the better oil stock for you, or it could make Devon Energy (DVN -1.17%) the oil stock you might want to pick. Here's why.The basics: Exxon vs. DevonDevon En ...

Good. I caught you. Looking for value, that is. If that describes you, I urge you to give this article a read, or Stop, In The Name of Love. We think after you read thisHe is the leader of the investing group The Daily Drilling Report where he provides investment analysis for the oil and gas industry. Features of the group include: a model portfolio that covers all segments of upstream oilfield activity with weekly updates, ideas for both U.S and international energy companies, coverage from shale to deepwa ...

Retirement is complicated and you only get once chance to do it right. Don't miss out because you didn't know what was out there.The Retirement Forum provides actionable ideals, a high-yield safe retirement portfolio, and macroeconomic outlooks, all to help you maximize your capital and your income. We search the entire market to help you maximize returns.Devon Energy (NYSE: DVN ) is a mid-cap oil company worth just under $25 billion. The company has gone up almost 10% since we last recommended buying the d ...

Investors interested in Oil and Gas - Exploration and Production - United States stocks are likely familiar with Devon Energy (DVN) and EOG Resources (EOG) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimat ...

Core Viewpoint - Devon Energy is considered an attractive stock for investors with a long-term optimistic outlook on oil and gas, particularly due to its operational progress and integration of the Grayson Mill acquisition [2][5]. Production and Financial Performance - In Q4, Devon Energy achieved total oil and gas production of 848,000 barrels of oil equivalent per day (BOE/D), exceeding prior estimates of 811,000 to 830,000 BOE/D [2]. - The outperformance was attributed to better well productivity in the Eagle Ford assets and a contribution of 117,000 BOE/D from the Grayson Mill acquisition, surpassing the previous estimate of 110,000 BOE/D [3]. - Management raised its 2025 production guidance by 2% to a range of 805,000 to 825,000 BOE/D, projecting free cash flow (FCF) of over $3 billion at an oil price of $70 per barrel, which represents 12.3% of its market cap of approximately $24.4 billion [4]. Capital Allocation and Dividend Policy - Devon Energy's capital allocation plan allocates 30% of FCF to improve its balance sheet and 70% for returning cash to investors through share buybacks and dividends [6]. - The variable dividend component was eliminated in Q3 2024, with management focusing on a sustainable, annually growing fixed dividend, which is projected to yield 2.6% based on current prices if no variable dividend is paid in 2025 [7]. - The company plans to spend $800 million to $1.2 billion of the potential $3 billion in FCF on share buybacks, with a fixed dividend costing approximately $620 million in 2025 and $900 million earmarked for balance sheet improvements [9][10]. Strategic Outlook - Management believes that integrating Grayson Mill with existing assets will yield additional cost savings and enhance operational efficiency through continued investment in multizone projects in the Permian region [5]. - The focus for 2025 appears to be on debt repayment and share repurchases rather than a variable dividend, with $1.5 billion of its $8.9 billion debt maturing in 2025 and 2026 [10]. - The capital allocation strategy is viewed positively, as it is expected to reduce share count and interest payments, leading to increased cash flow per share for investors in the future [11].

Core Viewpoint - Devon Energy Corporation reported better-than-expected fourth-quarter 2024 earnings per share, driven by strong production volumes and new well productivity, despite a drop in realized commodity prices [1][4]. Financial Performance - Earnings per share for Q4 2024 was $1.16, surpassing the Zacks Consensus Estimate of $1.00 by 16% [3]. - Revenues also exceeded expectations, surpassing the Zacks Consensus Estimate by 3.9% [1]. - The company has consistently outperformed expectations in the last four quarters, with an average earnings surprise of 8.63% [2]. Production and Reserves - Net production in Q4 totaled 848,000 barrels of oil equivalent per day (Boe/d), a 28.1% increase year over year, exceeding the guided range of 811,000-830,000 Boe/d [4]. - Natural gas liquids production increased by 30.8% year over year to 221,000 barrels per day (Bbl/d), while oil production rose by 25.5% to 398,000 Bbl/d [5]. - In 2024, 415 million barrels of oil equivalent (MMBoe) were added to reserves, achieving a replacement rate of 154% of production [10]. Cost Management - Production costs averaged $11.30 per Boe in Q4, a decline of 1% from the prior period, with effective cost management driving per-unit rates 10% below guidance [7][13]. - The company is focused on reducing costs by selling higher-cost assets and optimizing production [13]. Shareholder Returns - Devon repurchased shares worth $301 million in Q4 and paid dividends of $144 million, with a 9% increase in the quarterly dividend for Q1 2025 [6]. - The new quarterly dividend rate will be 24 cents, and the company may buy back shares in the range of $200-$300 million per quarter in 2025 [6]. Market Position - Devon's stock has outperformed its industry in the past month, with a return on equity (ROE) of 22.52%, compared to the industry average of 15.82% [14][17]. - The company's shares are trading at a discount, with a trailing 12-month EV/EBITDA of 4.41X compared to the industry average of 11.54X [19]. Future Outlook - Devon expects total production of 805,000-825,000 Boe/d in 2025, supported by ongoing investments in higher-margin U.S. oil-producing regions [11]. - The Zacks Consensus Estimate for Devon's 2025 and 2026 earnings per share has increased by 2.3% and 2.6%, respectively, in the past 60 days [8].