Roth/MKM Reaffirms Buy on Devon Energy After 2026 Production Review

Core Viewpoint - Roth/MKM reiterated a Buy rating and a $42 price target on Devon Energy after reviewing the company's 2026 production outlook and capital spending plans [1] Group 1: Production Outlook - Roth/MKM conducted a detailed analysis of Devon's production model for 2026, evaluating the asset-level implications of guidance issued in early November [1] - The production forecast from Roth/MKM was slightly ahead of the company's guidance [1] Group 2: Capital Expenditure - Capital expenditure assumptions from Roth/MKM were in line with management's outlook [1] - The analysis focused on capital efficiency in the Bakken, including a detailed review of base decline rates at the well level [2] Group 3: Asset Performance - Roth/MKM expected the Bakken to experience the largest production declines among Devon's four primary operating assets in 2026 [2] - Despite the anticipated production declines in the Bakken, Devon's valuation remained attractive [2]