Core Viewpoint - Devon Energy Corporation (DVN) has shown a positive one-month performance with an 8.1% increase in share price, outperforming the S&P 500 index's 4% return and the Zacks Oil and Energy sector's decline of 5.1% [1] Group 1: Stock Performance - Over the past year, DVN's stock has declined by 9.2%, indicating a gradual recovery path [2] - Devon's shares are currently trading above the 50-day moving average, suggesting a bullish trend [2] Group 2: Production and Assets - Devon Energy's multi-basin portfolio and focus on high-quality assets are enhancing its production capabilities [4] - The company has raised its production volume guidance twice in 2024, with expectations for further increases due to strong performance from existing assets and new acquisitions [5] - Devon's assets can sustain production levels for over 10 years, with ongoing exploration activities expected to replenish production volumes [6] - The company has a diverse commodity mix, balancing exposure to oil, natural gas, and natural gas liquids, while also working to reduce drilling and completion costs [7] Group 3: Shareholder Value - Devon Energy returned $532 million to shareholders in the first half of 2024 through share buybacks and dividends, with a current dividend yield of 2.05%, outperforming the Zacks S&P Composite's yield of 1.5% [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] Group 4: Financial Metrics - Devon Energy's return on invested capital (ROIC) stands at 10.29%, outperforming the industry average of 7.71%, indicating effective investment in profitable projects [10] - The company's current trailing 12-month Enterprise Value/Earnings before Interest Tax Depreciation and Amortization (EV/EBITDA TTM) is 4.27, which is lower than the industry average of 6, suggesting that shares are trading at a discount [12] Group 5: Overall Assessment - Devon Energy has a balanced exposure to various energy commodities, a low-cost production structure that enhances margins, and generates free cash flow to strengthen its balance sheet and increase shareholder value [13] - The stock is considered high-quality with strong ROIC and is trading at a discount, making it a potential addition for investors [14]

Core Insights - The U.S. rig count has increased slightly to 586, up from 585 the previous week, but down from 622 a year ago, indicating a slowdown in drilling activities [4] - The oil rig count rose to 481 from 479 week-over-week, but is significantly lower than the peak of 1,609 in October 2014 and down from 501 year-over-year [5] - The natural gas rig count decreased to 101 from 102, and is also down from 117 year-over-year, reflecting a long-term decline in natural gas exploration [6] Industry Overview - Baker Hughes' weekly rig count data, published since 1944, serves as a key indicator for energy service providers to assess the oil and gas industry's business environment [2] - The increase in the rig count may suggest a demand trajectory for oilfield services, although some analysts express concerns about the efficiency of shale producers and their land availability for drilling [4] Rig Count Details - Onshore rigs totaled 567, up from 566, while offshore rigs remained stable at 18 [5] - The vertical drilling rig count fell to 12 from 14, while horizontal/directional rigs increased to 574 from 571 [7] - The Permian Basin, the most prolific area for oil and gas in the U.S., maintained a rig count of 304, down from 311 year-over-year [8] Market Conditions - Current West Texas Intermediate (WTI) crude prices are around $70 per barrel, creating a favorable environment for exploration and production despite a moderation in drilling activity [9] - U.S. oil and gas companies benefit from lower breakeven prices, with most new wells remaining below current market levels, supporting profitability [9] Company Highlights - Devon Energy has expanded its operations through a $5 billion acquisition of Grayson Mill Energy's Williston Basin business, enhancing its oil production and drilling locations [11] - Diamondback Energy has reported improvements in well productivity in the Midland Basin, indicating potential for increased production volumes [12] - The recent Endeavor merger has expanded Diamondback Energy's footprint in the Permian Basin to approximately 838,000 net acres, with a breakeven oil price below $40 per barrel [13]

Core Viewpoint - Devon Energy's stock performance has been mixed, with a recent gain but a decline over the past month, and upcoming earnings are anticipated to show a significant drop in EPS compared to the previous year [1][2]. Company Performance - Devon Energy closed at $42.42, reflecting a +1.51% increase from the previous day, outperforming the S&P 500's gain of 0.9% [1]. - Over the past month, shares of Devon Energy have decreased by 0.69%, underperforming the Oils-Energy sector's gain of 5.22% and the S&P 500's gain of 3.15% [1]. Upcoming Earnings - The earnings report for Devon Energy is scheduled for November 5, 2024, with projected EPS of $1.14, indicating a 30.91% decline year-over-year [2]. - Revenue is expected to be $3.8 billion, reflecting a 0.95% decrease compared to the same quarter of the previous year [2]. Full-Year Estimates - Zacks Consensus Estimates predict full-year earnings of $5.02 per share and revenue of $15.47 billion, representing year-over-year changes of -12.08% and +1.37%, respectively [3]. Analyst Projections - Recent shifts in analyst projections for Devon Energy should be monitored, as they often indicate short-term business trends and analyst sentiment regarding the company's profitability [4]. Zacks Rank and Valuation - Devon Energy currently holds a Zacks Rank of 3 (Hold), with the consensus EPS estimate decreasing by 6.23% over the last 30 days [6]. - The company has a Forward P/E ratio of 8.32, which is lower than the industry average of 10.03 [7]. PEG Ratio - Devon Energy's PEG ratio stands at 1.26, compared to the industry average of 1.34, indicating a relatively favorable valuation considering expected earnings growth [8]. Industry Context - The Oil and Gas - Exploration and Production - United States industry is ranked 237 in the Zacks Industry Rank, placing it in the bottom 6% of over 250 industries [9].

It's time to hedge geopolitical risk by getting exposure to oil stocks. Devon Energy (DVN 1.34%) stock has moved in line with oil prices this year. So it's no surprise that a decline in the latter has led to a sell-off in recent months. And that in turn has led to downbeat views from several Wall Street analysts. Devon Energy's price targets Analysts have been lowering price targets on Devon Energy in recent weeks, as oil prices have declined from the mid-$80s in the summer to $72. Most recently, Truist fol ...

Lower oil prices overshadowed a positive development. Shares of Devon Energy (DVN 3.19%) fell 12.6% in September, according to data provided by S&P Global Market Intelligence. The culprit was lower oil prices. That offset the positive effect of closing a needle-moving acquisition. Down despite a big deal Oil prices were under pressure again last month. WTI, the main U.S. oil price benchmark, fell another 7.3% in September, closing the month at around $68 per barrel. It has now declined by 16.4% over the pas ...

OKLAHOMA CITY, Sept. 27, 2024 (GLOBE NEWSWIRE) -- Devon Energy Corp. (NYSE: DVN) today announced that it has completed its previously announced acquisition of Grayson Mill Energy, for a transaction valued at $5 billion before giving effect to purchase price adjustments. The acquisition adds a high-margin production mix that enhances Devon's position as one of the largest producers in the U.S. The transaction transforms the company's Williston Basin business, with the addition of 307,000 net acres, 500 undri ...

Valuation and Market Position - Devon Energy Corporation (DVN) is trading at a discount with an EV/EBITDA TTM of 4.01X, compared to the industry average of 7.17X and 12.4% below its five-year median of 4.58X, indicating an attractive valuation [1][2] - Compared to peers like Chesapeake Energy Corporation (CHK) and EQT Corporation (EQT), which have EV/EBITDA TTM of 5.51X and 7.26X respectively, Devon is favorably positioned [2] Production and Growth Potential - Devon has a multi-basin portfolio focusing on high-margin assets with significant long-term growth potential, raising its 2024 production guidance to 677,000-688,000 Boe per day from a previous range of 655,000-675,000 Boe per day [4] - The acquisition of Grayson Mill Energy's Williston Basin business will expand Devon's net acre position to 430,000 acres and triple production in the basin to 150,000 Boe per day, enhancing operating margins due to existing midstream infrastructure [5] Cost Management and Financial Performance - The company is actively managing costs by divesting higher-cost assets and optimizing production costs, achieving an average production cost of $12.25 per Boe in Q2 2024, a 1% decline from the prior period [6][8] - Devon's field-level cash margins increased by 6% year-over-year to $31.19 per Boe, supported by a low-cost structure and higher commodity prices [8] Shareholder Value and Returns - Devon has been generating stable free cash flow and enhancing shareholder value through share buybacks, repurchasing $2.7 billion worth of shares as of June 30, 2024, and increasing its share repurchase authorization by 67% to $5 billion through mid-2026 [9][10] - The trailing 12-month return on equity for Devon is 29.14%, outperforming the industry average of 17.22%, indicating effective utilization of shareholders' funds [13] Earnings Estimates and Market Performance - The Zacks Consensus Estimate for Devon's earnings per share for 2024 and 2025 has decreased by 5.4% and 10.2% respectively over the past 60 days, suggesting potential challenges ahead [7] - Despite the attractive valuation and strong operational metrics, Devon's stock has underperformed its industry over the last twelve months [11][15]

Devon Energy (DVN) closed the most recent trading day at $41.01, moving -0.27% from the previous trading session. This change lagged the S&P 500's daily gain of 0.25%. On the other hand, the Dow registered a gain of 0.2%, and the technology-centric Nasdaq increased by 0.56%. Shares of the oil and gas exploration company have depreciated by 8.91% over the course of the past month, underperforming the Oils-Energy sector's loss of 0.05% and the S&P 500's gain of 1.65%. Market participants will be closely follo ...

OKLAHOMA CITY, Sept. 24, 2024 (GLOBE NEWSWIRE) -- Devon Energy Corp. (NYSE: DVN) today announced it will report third-quarter 2024 results on Tuesday, Nov. 5, after the close of U.S. financial markets. The earnings release and presentation for the third-quarter 2024 results will be available on the company's website at www.devonenergy.com. On Wednesday, Nov. 6, the company will hold a conference call at 10 a.m. CST (11 a.m. EST), which will consist primarily of answers to questions from analysts and investo ...

Anton Zharkov is a financial analyst specializing in manufacturing companies across all industries except financial companies, insurers, REITs, and banks. In his articles, he will provide detailed analysis of mega and large-cap stocks for long/short portfolios, utilizing quantitative models from Eyestock.io. He will focus on factors such as growth, value, and high-quality, complementing these with classic bottom-up fundamental analysis. Most of the stocks discussed in his articles will be purchased or alrea ...