Roth/MKM and UBS Positive on Devon Energy (DVN) After Bakken Capital Efficiency and Cost-Cutting Programs

Core Viewpoint - Devon Energy Corporation (NYSE:DVN) is positioned as a strong investment opportunity in the hydrogen and fuel cell sector for 2026, with positive ratings from analysts and expectations for significant operational improvements [1][2]. Group 1: Analyst Ratings and Price Targets - Roth/MKM has reaffirmed a Buy rating for Devon Energy with a price target of $42, reflecting a bullish outlook based on a detailed analysis of the company's 2026 output model [1]. - UBS upgraded Devon from Neutral to Buy, citing an improving oil outlook for the latter half of 2026 and an anticipated $1 billion debt reduction as key factors driving the company's performance [2]. Group 2: Production and Capital Expenditure Insights - The production predictions for 2026 by Roth/MKM are higher than Devon's own guidance, while capital expenditure expectations align with the company's estimates [1]. - UBS expects that developments in the first half of 2026 will enhance confidence in Devon's ability to achieve its $1 billion cost-cutting target by year-end, projecting that 2027 capital expenditures will be approximately $200 million lower than the market's estimates of $3.7 billion [3]. Group 3: Company Overview and Strategic Focus - Devon Energy is a key player in the U.S. energy market, focusing on the exploration, development, and production of oil, natural gas, and natural gas liquids [4]. - The company is exploring hydrogen as part of its energy transition strategy, investigating technologies such as renewable natural gas and carbon capture, and sees hydrogen as a future energy source [4].