Core Viewpoint - The article emphasizes the importance of value investing and highlights Devon Energy (DVN) as a strong candidate for value investors due to its favorable financial metrics and Zacks Rank. Group 1: Company Overview - Devon Energy (DVN) currently holds a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential for value investors [4] - The stock is trading with a P/E ratio of 7.36, significantly lower than the industry average P/E of 9.62 [4] - DVN's Forward P/E has fluctuated between 6.41 and 10.82 over the past 52 weeks, with a median of 8.04 [4] Group 2: Financial Metrics - DVN has a PEG ratio of 0.66, which is lower than the industry average PEG of 0.96, suggesting it may be undervalued relative to its expected earnings growth [5] - The stock's P/B ratio is 2.17, compared to the industry's average P/B of 2.32, indicating a solid valuation [6] - DVN's P/S ratio stands at 1.77, lower than the industry average P/S of 2.04, reinforcing its attractiveness as a value stock [7] - The P/CF ratio for DVN is 4.41, significantly below the industry's average P/CF of 7.73, suggesting strong cash flow relative to its market value [8] Group 3: Investment Outlook - The combination of DVN's favorable financial metrics and strong earnings outlook positions it as one of the market's strongest value stocks [9]

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 ...

Fossil fuels might seem anachronistic given the push for clean and renewable energy. However, the harsh reality is that the world continues to run on hydrocarbons. What's more, this dynamic might not change anytime soon. Scientifically, oil features high energy density. Basically, a gallon of gasoline can power a car for 30 miles or more. Such relevance makes high-yield oil stocks attractive. Yes, many investors bet on hydrocarbons for their growth potential. But because this sector is so important, so vita ...

Devon Energy is a cash-flow-producing (and returning) machine. Devon Energy (DVN 2.83%) has transformed into a low-cost oil producer over the years. It has jettisoned high-cost operations and recycled that capital to grow its higher-returning assets. This strategy continues to pay big dividends for shareholders. Devon is generating lots of cash and returning much of it to its investors. The oil company's cash-generating capabilities were on full display during the second quarter. With further improvements a ...

Devon Energy Corporation (NYSE:DVN) Q2 2024 Earnings Conference Call August 7, 2024 11:00 AM ET Company Participants Rosy Zuklic - VP of IR Rick Muncrief - President and CEO Clay Gaspar - COO Jeff Ritenour - CFO Conference Call Participants Arun Jayaram - JPMorgan Neil Mehta - Goldman Sachs Neal Dingmann - Truist Roger Read - Wells Fargo Scott Gruber - Citigroup Kalei Akamine - Bank of America Merrill Lynch Betty Jiang - Barclays Charles Meade - Johnson Rice Kevin MacCurdy - Pickering Energy Partners Paul C ...