Core Viewpoint - Devon Energy Corp. is actively engaging with investors and stakeholders through participation in industry conferences, highlighting its commitment to transparency and communication [1]. Group 1: Company Announcement - Devon Energy's President and CEO, Clay Gaspar, will participate in a fireside chat at the J.P. Morgan Energy, Power, Renewables & Mining Conference on June 24, 2025 [1]. - The event is scheduled for 9:20 a.m. Central time and will be available for live streaming on Devon's website, with a replay accessible for 30 days post-event [1]. Group 2: Company Overview - Devon Energy is recognized as a leading oil and gas producer in the U.S., with a diversified multi-basin portfolio, particularly noted for its strong position in the Delaware Basin [2]. - The company employs a disciplined cash-return business model aimed at achieving robust returns, generating free cash flow, and returning capital to shareholders while maintaining a focus on safe and sustainable operations [2].

Core Viewpoint - Devon Energy (NYSE: DVN) is rated as a Buy with a price target of $40, indicating that the company is currently undervalued based on historical valuations [1] Valuation Analysis - The company is trading at approximately 4.1x EV/EBITDA, which is lower than the historical average of 4.8x [1]

Group 1: Company Performance - Devon Energy's stock closed at $34.47, reflecting a +2.99% increase, outperforming the S&P 500's -0.27% loss on the same day [1] - The company is expected to report an EPS of $0.84, indicating a 40.43% decline year-over-year, while revenue is projected at $4.02 billion, a 2.66% increase from the same quarter last year [2] - For the full year, earnings are anticipated to be $3.94 per share and revenue $16.68 billion, representing changes of -18.26% and +4.67% respectively from the previous year [3] Group 2: Analyst Estimates and Rankings - Recent changes in analyst estimates for Devon Energy are crucial as they reflect the evolving business landscape, with positive revisions indicating confidence in performance [4] - The Zacks Rank system, which assesses estimate changes, currently ranks Devon Energy at 3 (Hold), with a recent 8.09% decrease in the EPS estimate over the last 30 days [6] - The Zacks Rank has a strong historical performance, with 1 ranked stocks yielding an average annual return of +25% since 1988 [6] Group 3: Valuation Metrics - Devon Energy has a Forward P/E ratio of 8.5, which is lower than the industry average Forward P/E of 10.86, indicating a valuation discount [7] - The company also has a PEG ratio of 2.48, aligning with the industry average PEG ratio of 2.48, which considers expected earnings growth [7] Group 4: Industry Context - The Oil and Gas - Exploration and Production - United States industry, part of the Oils-Energy sector, holds a Zacks Industry Rank of 171, placing it in the bottom 31% of over 250 industries [8] - The Zacks Industry Rank evaluates industry strength based on the average Zacks Rank of individual stocks, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [8]

Group 1 - The upstream shale oil and gas sector has experienced a significant downturn, with a 30% decline in oil prices since the beginning of the year, dropping from nearly $80 in mid-January [1] - Supply fears have been alleviated due to tariff-related tensions, impacting investor sentiment in the sector [1] - The Daily Drilling Report provides investment analysis for the oil and gas industry, including a model portfolio covering all segments of upstream oilfield activity and technical analysis to identify catalysts [1] Group 2 - Fluidsdoc is an expert in the upstream oil sector with 40 years of international experience across six continents and over twenty countries [2]

Core Viewpoint - Devon Energy's shares have increased by approximately 4.2% since the last earnings report, underperforming the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1] Estimates Movement - Fresh estimates for Devon Energy have trended downward over the past month, with the consensus estimate shifting down by 13.65% [2] VGM Scores - Devon Energy currently holds a strong Growth Score of A, but has a low Momentum Score of F. The stock also received an A grade for value, placing it in the top quintile for this investment strategy. The aggregate VGM Score for the stock is A, which is significant for investors not focused on a single strategy [3] Outlook - The overall trend of estimates for Devon Energy has been downward, indicating a shift in expectations. The company holds a Zacks Rank of 3 (Hold), suggesting an expectation of in-line returns in the coming months [4] Industry Performance - Devon Energy is part of the Zacks Oil and Gas - Exploration and Production - United States industry. Another player in this sector, Viper Energy Partners, has seen a 2% gain over the past month, reporting revenues of $245 million for the last quarter, which is a year-over-year increase of 19.3% [5] Viper Energy Estimates - Viper Energy is projected to report earnings of $0.35 per share for the current quarter, reflecting a year-over-year decline of 42.6%. The Zacks Consensus Estimate for Viper Energy has changed by -10.3% over the last 30 days, resulting in a Zacks Rank of 3 (Hold) and a VGM Score of D [6]

Group 1 - Devon Energy Corporation (NYSE: DVN) is currently trading near $30, reflecting a decline in energy prices [1] - The company is experiencing volatility in energy prices, which will impact short-term pricing [1] - The price of oil is expected to stabilize, suggesting that current low prices may not persist [1]

Industry Overview - The Zacks Oil and Gas Exploration and Production – United States industry is vital for the nation's energy supply, focusing on locating and extracting oil and gas reserves [1] - The U.S. is a leading oil and natural gas producer, with significant production areas including the Permian Basin, Eagle Ford, Bakken Formation, and the Gulf of Mexico [1] - Technological advancements like hydraulic fracturing and horizontal drilling have enhanced domestic output, decreasing reliance on foreign energy [1] Environmental and Regulatory Challenges - The industry faces environmental challenges, regulatory constraints, and a global shift towards renewable energy [2] - Fluctuating commodity prices affect investment and operational strategies, prompting U.S. E&P companies to focus on operational efficiency and emissions control [2] Company Profiles Devon Energy - Devon Energy is a leading U.S. onshore oil and gas producer with a diversified asset portfolio and disciplined capital allocation [3] - The company generates strong free cash flow and employs shareholder-friendly practices, including a variable dividend strategy and share buybacks [3] - Devon is positioned to benefit from sustained hydrocarbon demand and has a low-cost operating model, solid balance sheet, and focus on operational efficiency [3] - The Zacks Consensus Estimate for Devon's earnings shows a year-over-year decline of 18.48% for 2025, with a growth of 2.18% for 2026 [6] EOG Resources - EOG Resources is recognized as one of the most efficient shale producers in the U.S., with a high-quality, low-decline asset portfolio [4] - The company is known for superior well productivity and disciplined capital allocation, consistently generating strong free cash flow [4] - EOG's earnings projections indicate a year-over-year decline of 19.71% for 2025, with a growth of 5.54% for 2026 [10] Financial Metrics - Devon Energy's current Return on Equity (ROE) is 21.9%, while EOG's ROE is 22.35%, both exceeding the industry's ROE of 16.74% [13] - The dividend yield for Devon Energy is 3.08%, compared to EOG Resources' 3.54%, both higher than the S&P 500's yield of 1.6% [14] - Devon plans to invest between $3.7 billion and $3.9 billion in capital expenditures for 2025, while EOG's projected capital expenditures are between $5.8 billion and $6.2 billion [15][16] - Devon's debt to capital ratio is 36.24%, while EOG's is significantly lower at 10.50% [17] - On a valuation basis, Devon Energy trades at 3.44X EV/EBITDA, while EOG trades at 4.82X, compared to the industry's 10.52X [18] Conclusion - Devon Energy's multi-basin portfolio and focus on domestic high-margin assets provide significant long-term growth potential [19] - EOG Resources' access to key shale resources supports its long-term production growth [19] - Devon Energy is currently favored as a better investment option due to its cheaper valuation and strong domestic asset base [20]

Core Insights - The article emphasizes the importance of conducting personal in-depth research and due diligence before making investment decisions [3]. Group 1 - The analysis is intended for informational purposes and should not be considered professional investment advice [3]. - There is a clear statement that past performance does not guarantee future results, highlighting the inherent uncertainties in investment [4]. - The article expresses that the views or opinions may not reflect those of the platform as a whole, indicating a diversity of perspectives among analysts [4].

Core Viewpoint - Devon Energy Corporation (DVN) has shown a year-to-date stock gain of 1.6%, contrasting with a 22.8% decline in the Zacks Oil & Gas - Exploration and Production - United States industry and a 1.3% decline in the broader Zacks Oil and Energy sector [1] Performance Analysis - Over the past year, DVN's stock has declined by 32.7%, indicating a gradual recovery path, while Occidental Petroleum Corporation (OXY) experienced a 31.7% decline [2] - Devon Energy's return on invested capital (ROIC) stands at 8.71%, outperforming the industry average of 7.33% [15] Factors Contributing to Performance - The company benefits from a well-balanced commodity mix, focusing on oil, natural gas, and natural gas liquids, with a production replacement rate of 154% in 2024 [7] - DVN has a diversified, multi-basin portfolio of high-margin oil and gas assets, enhancing its asset base through strategic acquisitions [8] - The acquisition of Grayson Mill Energy's Williston Basin assets expanded net acreage from 123,000 to 430,000 acres, expected to triple production from 50,000 to 150,000 barrels of oil equivalent per day (Boe/d) [9] - A low-cost operating model supports profitability, with ongoing efforts to reduce drilling and completion expenses and streamline the workforce [10] Earnings Performance - DVN has reported strong earnings results, with an average earnings surprise of 6.09% over the last four quarters, despite missing expectations in the most recent quarter [12][13] - The Zacks Consensus Estimate for DVN's earnings per share for 2025 and 2026 has declined by 15.23% and 18.2%, respectively, in the past 60 days [17] Valuation - Devon Energy's shares are currently trading at a trailing 12-month Enterprise Value/Earnings before Interest Tax Depreciation and Amortization (EV/EBITDA TTM) of 3.61X, significantly lower than the industry average of 9.39X, indicating an inexpensive valuation [20] Summary - Devon Energy's multi-basin assets and balanced exposure to various commodities contribute positively to its performance, with a better return than the industry and an attractive valuation [21]

Core Insights - Devon Energy reported revenue of $4.45 billion for the quarter ended March 2025, reflecting a year-over-year increase of 23.8% [1] - The company's EPS was $1.21, slightly up from $1.16 in the same quarter last year, but below the consensus estimate of $1.27, resulting in an EPS surprise of -4.72% [1] - The revenue exceeded the Zacks Consensus Estimate of $4.36 billion, indicating a positive surprise of +2.05% [1] Financial Performance Metrics - Total oil equivalent production was 815 million barrels per day, slightly below the average estimate of 817.2 million barrels [4] - Average daily oil production was 388 million barrels, exceeding the average estimate of 383.85 million barrels [4] - Average daily gas production reached 1,346 million cubic feet, surpassing the estimate of 1,329.95 million cubic feet [4] - Average daily NGL production was 203 million barrels, below the estimate of 211.1 million barrels [4] - Marketing and midstream revenues were reported at $1.42 billion, exceeding the average estimate of $1.27 billion, with a year-over-year increase of +28.1% [4] - Revenues from oil, gas, and NGL sales totaled $3.13 billion, slightly above the estimate of $3.10 billion, marking an 18.9% year-over-year increase [4] - Oil revenues were $2.41 billion, slightly below the estimate of $2.43 billion [4] - NGL revenues were reported at $403 million, also below the estimate of $407.79 million [4] - The company reported a loss of $98 million from oil, gas, and NGL derivatives, contrasting with the average estimate of a $17.88 million gain, representing a year-over-year decline of -32.4% [4] Stock Performance - Devon Energy's shares have returned +15.2% over the past month, outperforming the Zacks S&P 500 composite, which saw a +3.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]