Core Insights - The article emphasizes the importance of identifying undervalued stocks that are mispriced by the market as a strategy for investment in November [1]. Group 1: Company Overview - Stone Fox Capital is an RIA based in Oklahoma, led by Mark Holder, who has 30 years of investing experience, including 15 years as a portfolio manager [2]. - Mark Holder is a CPA with degrees in Accounting and Finance and is Series 65 licensed [2]. Group 2: Investment Strategy - The investing group "Out Fox The Street" provides stock picks and in-depth research aimed at uncovering potential multibaggers while managing portfolio risk through diversification [2]. - Features of the group include model portfolios, stock picks with identifiable catalysts, daily updates, real-time alerts, and community chat access for direct interaction with Mark [2].

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Data and Key Metrics Changes - Devon generated operating cash flow of $1.7 billion in the third quarter, with free cash flow totaling $820 million, enabling significant shareholder returns including $151 million in dividends and $250 million in share repurchases [13][14] - The company ended the quarter with $4.3 billion in total liquidity, including $1.3 billion in cash, and maintained a low net debt-to-EBITDA ratio of 0.9 times [14] - Devon retired $485 million in debt during the quarter, achieving nearly $1 billion towards its $2.5 billion debt reduction target [14] Business Line Data and Key Metrics Changes - Oil production exceeded guidance by 3,000 barrels per day, with a 5% reduction in operating costs compared to the start of the year [6][13] - Capital investment was 10% below the first-half run rate, contributing to robust free cash flow [6][13] - The business optimization initiative is on track to generate an incremental $1 billion of annual pre-tax free cash flow, with over 60% of the target already achieved [8][9] Market Data and Key Metrics Changes - Devon's production optimization efforts have led to a significant improvement in well productivity, placing the company in the upper echelon of its peers [7] - The company anticipates maintaining production around 845,000 BOE per day in 2026, with oil production at approximately 388,000 bbl per day [15] Company Strategy and Development Direction - Devon is focused on business optimization and capital efficiency, aiming to reshape its operations and enhance margins [4][8] - The company is committed to continuous improvement, innovation, and technological leadership to strengthen operations and deliver strong shareholder returns [12][16] - Devon plans to maintain a disciplined approach to capital planning, with anticipated capital investment of $3.5 billion-$3.7 billion for 2026, a reduction of $500 million compared to previous levels [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate strong free cash flow despite macroeconomic uncertainties and commodity price volatility [15][16] - The management team highlighted the importance of operational momentum and the focus on per-share growth and maximizing free cash flow [15][16] Other Important Information - The company has executed several strategic actions to optimize its portfolio, including dissolving a joint venture in the Eagle Ford and acquiring additional locations in New Mexico [10][11] - Devon's focus on technology and automation is expected to drive further efficiencies and production enhancements [25][37] Q&A Session Summary Question: Insights on business optimization program and future potential - Management highlighted the progress made in the business optimization program, achieving 60% of the target in a third of the time, with over 80 workstreams ongoing [22][23] Question: Managing base production and sustainability - Management discussed the importance of value enhancement alongside cost reduction, emphasizing ongoing projects that contribute to sustainable production improvements [34][40] Question: M&A strategy and interest in the Anadarko Basin - Management acknowledged the renewed interest in the Anadarko Basin and emphasized the importance of evaluating portfolio positioning regularly [78][79] Question: Production optimization and LOE cost expectations - Management confirmed that production optimization efforts have led to significant reductions in LOE costs, with ongoing improvements expected in 2026 [69][70] Question: Future lease sales and cash allocation - Management expressed enthusiasm for participating in upcoming federal lease sales, highlighting the company's competitive positioning and existing infrastructure [93][94]

Financial Data and Key Metrics Changes - Devon generated operating cash flow of $1.7 billion in Q3 2025, with free cash flow totaling $820 million, enabling significant shareholder returns including $151 million in dividends and $250 million in share repurchases [13][14] - The company ended the quarter with $4.3 billion in total liquidity, including $1.3 billion in cash, and maintained a low net debt-to-EBITDA ratio of 0.9 times [14] - Devon retired $485 million in debt during the quarter, achieving nearly $1 billion towards its $2.5 billion debt reduction target [14] Business Line Data and Key Metrics Changes - Oil production exceeded guidance by 3,000 barrels per day, with a 5% reduction in operating costs compared to the start of the year [6][13] - Capital investment was 10% below the first-half run rate, contributing to robust free cash flow [6][13] - The company raised its full-year production expectations every quarter this year while reducing capital by $400 million since preliminary guidance [7] Market Data and Key Metrics Changes - Devon's well productivity is in the upper echelon of peers, reflecting the strength of its asset portfolio and operational execution [7] - The company anticipates maintaining production around 845,000 BOE per day in 2026, with oil production at approximately 388,000 barrels per day [15] Company Strategy and Development Direction - Devon is focused on a business optimization plan aimed at generating an incremental $1 billion of annual pre-tax free cash flow, with over 60% of the target already achieved [3][8] - The company is committed to continuous improvement, innovation, and technological leadership to enhance operational efficiency and shareholder returns [12][16] - Strategic actions taken include dissolving a joint venture in the Eagle Ford and acquiring additional high-return opportunities in New Mexico [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties and maintain operational momentum [15][16] - The focus remains on maximizing free cash flow and making targeted reinvestments for sustained success, with a disciplined approach to capital planning [15][16] - Management highlighted the importance of preparing for potential market challenges while leveraging existing strengths [28][62] Other Important Information - Devon's business optimization initiatives are expected to deliver sustainable results, with ongoing projects aimed at reducing downtime and enhancing production efficiency [24][40] - The company is actively participating in upcoming lease sales and exploring M&A opportunities to enhance its portfolio [48][94] Q&A Session Summary Question: Insights on the business optimization program and potential upside - Management highlighted the progress made with over 80 workstreams and expressed confidence in achieving further results beyond the initial targets [22][23] Question: Managing base production and sustainability - Management discussed ongoing efforts to enhance base production through technology and operational improvements, emphasizing the sustainability of these initiatives [34][40] Question: Interest in M&A and the Anadarko Basin - Management acknowledged the renewed interest in the Anadarko Basin and emphasized the importance of evaluating portfolio positioning regularly [78][79] Question: Production optimization and LOE cost expectations - Management confirmed that production optimization efforts are leading to lower LOE costs and reduced maintenance capital needs, with ongoing improvements expected [68][70] Question: Future lease sales and cash allocation priorities - Management expressed enthusiasm for participating in federal lease sales and highlighted the strategic importance of these opportunities for future growth [93][94]

Production and Operations - Production totaled 853 MBoe/d, exceeding guidance by 2%[167] - Total production volumes increased by 20% from 700 MBoe/d in 2024 to 836 MBoe/d in 2025, primarily driven by the Grayson Mill acquisition and new well activity[188] - Oil production increased by 18% from 330 MBbls/d in 2024 to 388 MBbls/d in 2025, with significant growth in the Rockies region, which saw a 116% increase[187] - Total production expenses remained stable at $895 million, with a per Boe cost of $6.14 for LOE[177] - Production expenses rose by 18% from $2.302 billion in 2024 to $2.706 billion in 2025, largely due to increased activity in the Rockies and Delaware Basin[192] - Approximately 30% and 35% of anticipated 2025 oil and gas production are currently hedged, respectively[174] Financial Performance - Generated $1.7 billion of operating cash flow and $6.8 billion for the past twelve trailing months[167] - Earnings attributable to Devon were $687 million, or $1.09 per diluted share[167] - Net earnings for the nine months ended September 30, 2025, were $2.1 billion, a decrease from $2.3 billion for the same period in 2024, reflecting a change of approximately 9%[185] - Realized prices for oil decreased by 10% from $42.19 per Boe in 2024 to $37.86 per Boe in 2025, contributing to an $884 million decrease in earnings[189] - Operating cash flow for Q3 2025 was $1.69 billion, compared to $1.66 billion in Q3 2024, and $5.18 billion for the nine months ended September 30, 2025, compared to $4.94 billion in 2024[204][206] - Core earnings attributable to Devon for the three months ended September 30, 2025, were $856 million, or $1.04 per share[247] - EBITDAX for the three months ended September 30, 2025, was $1.86 billion, reflecting strong operational performance[252] Acquisitions and Investments - The acquisition of the Williston Basin business of Grayson Mill was for approximately $5.0 billion, enhancing oil production and operating scale[163] - Devon issued $3.25 billion of debt in Q3 2024 to partially fund the Grayson Mill acquisition and retired $472 million of debt in the same quarter[201] - On August 1, 2025, Devon acquired all outstanding noncontrolling interests in CDM for $260 million, fully attributing future net income and cash flows to Devon[218] Cash Management and Shareholder Returns - Cash-return objectives include opportunistic share repurchases, funding dividends, and repaying debt, with approximately 83% of the $5.0 billion share repurchase program completed[167] - Devon repurchased approximately 23.7 million shares for $800 million in the first nine months of 2025, compared to 16.3 million shares for $744 million in 2024[215] - A cash dividend of $0.24 per share was announced for the fourth quarter of 2025, totaling approximately $150 million[237] - The Board of Directors has authorized a $5.0 billion share repurchase program, with $4.2 billion executed through October 2025[237] Tax and Regulatory - The effective income tax rate for Q3 2025 was 24%, up from 21% in Q2 2025, influenced by the OBBB legislation[184] - For the nine months ended September 30, 2025, Devon's total income tax expense was $600 million, with an effective income tax rate of 22%[202] Asset Management - The company recognized a pre-tax gain of $307 million from the sale of its investment in Matterhorn, recorded as asset dispositions[183] - Asset impairments totaled $254 million in the first quarter of 2025 due to the rationalization of two headquarters-related real estate assets[196] - In Q2 2025, Devon sold its investment in Matterhorn for $372 million, recognizing a pre-tax gain of $307 million ($239 million net of tax) from the asset disposition[200] - Devon generated $134 million from divesting headquarters-related real estate assets and $372 million from the sale of Matterhorn in the first nine months of 2025[210] Financial Position and Outlook - Total debt as of September 30, 2025, was $8.4 billion, with $7.4 billion in fixed-rate debt averaging 5.7%[255] - As of September 30, 2025, Devon had approximately $3.0 billion of available borrowing capacity under its Senior Credit Facility[233] - The company has a credit rating of BBB from Standard and Poor's, BBB+ from Fitch, and Baa2 from Moody's, all with a stable outlook[234] - Capital expenditures for the first nine months of 2025 totaled $2.76 billion, representing approximately 53% of operating cash flow[208] - Capital expenditures for the remainder of 2025 are expected to be approximately $0.9 billion to $1.0 billion[238] - The capital expenditures budget indicates a focus on maintaining operational efficiency and growth[238] Business Optimization - The business optimization plan is expected to improve annual pre-tax cash flow by $1.0 billion, with $600 million anticipated to be completed by the end of 2025[166] - Devon's business optimization plan is expected to improve annual pre-tax cash flow by $1.0 billion, with $600 million anticipated to be achieved by the end of 2025[223] Market Conditions - Realized price for oil (unhedged) increased to $63.21 per Bbl, a 2% increase from Q2 2025[173] - Field-level cash margin increased to $24.41 per Boe, up from $23.68 in Q2 2025[179] - Cash settlements from hedges totaled $107 million in the first nine months of 2025, a decrease of 23% compared to $139 million in 2024[190] - A 10% change in the forward curves of commodity derivatives would have impacted net positions by approximately $200 million[254] - The company’s Field-Level Cash Margin for the nine months ended September 30, 2025, was $5.94 billion[252]

Financial Data and Key Metrics Changes - Devon Energy generated operating cash flow of $1.7 billion in Q3 2025, with free cash flow totaling $820 million, enabling significant shareholder returns including $151 million in dividends and $250 million in share repurchases [12][13] - The company ended the quarter with $4.3 billion in total liquidity, including $1.3 billion in cash, and maintained a low net debt-to-EBITDA ratio of 0.9 times [12][13] - Devon has achieved nearly $1 billion towards its $2.5 billion debt reduction target, retiring $485 million in debt this quarter [13][14] Business Line Data and Key Metrics Changes - Oil production exceeded guidance by 3,000 barrels per day, with a 5% reduction in operating costs compared to the start of the year [5][12] - Capital investment was 10% below the first-half run rate, contributing to robust free cash flow [5][12] - The company raised its full-year production expectations every quarter this year while reducing capital by $400 million since preliminary guidance [6][12] Market Data and Key Metrics Changes - Devon's well productivity stands in the upper echelon of its peers, reflecting the strength of its asset portfolio and operational execution [6][7] - The company anticipates maintaining production around 845,000 BOE per day in 2026, with oil production at approximately 388,000 barrels per day [15][16] Company Strategy and Development Direction - Devon is focused on a business optimization plan aimed at generating an incremental $1 billion of annual pre-tax free cash flow, having already achieved over 60% of this target [3][8] - The company is committed to continuous improvement, innovation, and technological leadership, with a focus on capital efficiency and operational excellence [10][16] - Devon is actively participating in state and federal lease sales, leveraging its existing footprint and operational efficiencies to create value [49][90] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties and maintain operational momentum, prioritizing per-share growth and maximizing free cash flow [15][16] - The company is taking a disciplined approach to capital planning, with expectations of generating strong free cash flow even at lower commodity prices [15][16] Other Important Information - Devon has executed several strategic actions, including dissolving a joint venture in the Eagle Ford and acquiring additional locations in New Mexico, which are expected to enhance returns [10][11] - The company is utilizing advanced technologies, including AI, to optimize production and reduce downtime, contributing to sustainable production improvements [24][38] Q&A Session Summary Question: Insights on business optimization program and potential upside - Management highlighted the progress made with over 80 workstreams and expressed confidence in achieving the $1 billion target, emphasizing the cultural shift towards value creation [20][21][22] Question: Managing base production and sustainability - Management discussed the importance of value enhancement alongside cost reductions, detailing initiatives that have contributed to production uplift and sustainability [34][35][36] Question: Interest in M&A and portfolio management - Management acknowledged the ongoing evaluation of portfolio positions and the potential for reallocating resources based on market demands and opportunities [51][52][76] Question: Operational reasons for retaining equity interest in Waterbridge - Management explained the strategic importance of the Waterbridge relationship for water management in the Delaware Basin, while also benefiting from the equity position [78][79] Question: Performance of Wolfcamp drilling program - Management reported that Wolfcamp is performing well relative to expectations, with a diversified program planned for 2026 [83][84]

Core Insights - Devon Energy Corp. reported third-quarter 2025 earnings per share (EPS) of $1.04, exceeding the Zacks Consensus Estimate of 93 cents by 11.8%, although down 5.5% year over year [1][9] - Total revenues for the quarter were $4.33 billion, surpassing the Zacks Consensus Estimate of $4.11 billion by 5.17% [3][9] Financial Performance - GAAP EPS for the quarter was $1.09, compared to $1.41 in the same quarter last year, with differences attributed to asset disposition gains and other financial adjustments [2] - Net cash from operating activities was $1.69 billion, slightly up from $1.66 billion in the third quarter of 2024 [11] - Total production expenses increased to $895 million, reflecting a 17.3% year-over-year rise [7] Production Metrics - Net production totaled 853,000 barrels of oil equivalent per day (Boe/d), marking a 17.2% increase year over year and exceeding the guidance range of 829,000-847,000 Boe/d [4][9] - Oil production reached 390,000 barrels per day, up 16.4% year over year, driven by strong performance in the Rockies region [5] Pricing and Realized Prices - Realized oil prices were $63.99 per barrel, down 13.8% from $74.26 a year ago, while realized prices for natural gas liquids decreased by 11.3% to $17.18 per barrel [6] - Total oil equivalent realized prices, including cash settlements, were $36.46 per Boe, down nearly 10.4% year over year [6][8] Shareholder Returns and Debt Management - Devon repurchased shares worth $250 million and paid dividends of $151 million to shareholders during the quarter [7] - Long-term debt decreased to $7.39 billion as of September 30, 2025, down from $8.88 billion at the end of 2024 [10] Future Guidance - For the fourth quarter, production is expected to be in the range of 828,000-844,000 Boe/d, with capital spending estimated between $0.89 billion and $0.95 billion [12] - In 2026, the company aims to maintain production levels between 835,000-855,000 Boe/d, with capital expenditures projected at $3.5 billion to $3.7 billion [13]

Q3 2025 Key Highlights - Devon Energy outperformed Q3 expectations across key value drivers and business optimization accelerates value capture[2] - The company delivered 390,000 barrels of oil per day, reaching the top-end of guidance[2] - Capital investment was $859 million, 5% below guidance[2] - Achieved a 5% improvement in operating cost[2] - Distributed approximately $400 million in dividends and share repurchases[2] - Retired $485 million of debt ahead of schedule[2] - Reduced full-year capital run-rate to $3.6 billion[2] Business Optimization - Business optimization achieved >60% of $1 billion target ahead of schedule[2] - Efficiency gains driving $225 million capital reduction for 2025[23] - Signed contracts in Delaware for $200 million in annual savings[23] Financial Strength and Shareholder Returns - Q3 Free Cash Flow was $820 million[8] - Total liquidity stands at $4.3 billion, including cash and undrawn credit facility[33] - Cash position as of 9/30/2025 was $1.3 billion[33] - Share buybacks amounted to $250 million in Q3 2025[29]

In the current market session, Devon Energy Inc. (NYSE:DVN) price is at $32.90, after a 1.73% spike. However, over the past month, the stock decreased by 5.85%, and in the past year, by 16.80%. Shareholders might be interested in knowing whether the stock is undervalued, even if the company is performing up to par in the current session. How Does Devon Energy P/E Compare to Other Companies?The P/E ratio is used by long-term shareholders to assess the company's market performance against aggregate market dat ...

Core Insights - Devon Energy reported $4.33 billion in revenue for Q3 2025, a year-over-year increase of 7.6% and a surprise of +5.17% over the Zacks Consensus Estimate of $4.12 billion [1] - The EPS for the quarter was $1.04, compared to $1.10 a year ago, with an EPS surprise of +11.83% over the consensus estimate of $0.93 [1] Financial Performance Metrics - Average Daily Production of Total Oil was 390 million barrels per day, exceeding the analyst estimate of 387.58 million barrels per day [4] - Average Daily Production of Total Gas was 1410 million cubic feet per day, surpassing the estimate of 1380.75 million cubic feet per day [4] - Average Daily Production of Total NGL was 228 million barrels per day, compared to the estimate of 221.11 million barrels per day [4] - Total oil equivalent production was 853 million barrels per day, above the seven-analyst average estimate of 838.7 million barrels per day [4] Revenue Breakdown - Marketing and midstream revenues reached $1.44 billion, exceeding the four-analyst average estimate of $1.3 billion, representing a year-over-year change of +27.4% [4] - Oil, gas, and NGL sales amounted to $2.81 billion, slightly above the estimated $2.76 billion, reflecting a +5.4% change compared to the previous year [4] - Oil, gas, and NGL derivatives generated $80 million, below the average estimate of $104.5 million, marking a significant decline of -64.8% year-over-year [4] Stock Performance - Devon Energy's shares have returned -7% over the past month, while the Zacks S&P 500 composite has increased by +1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]