Skip to main content Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv Coterra Energy misses quarterly profit estimates on weaker crude prices February 26, 20269:12 PM UTCUpdated ago By Reuters Coterra Energy's logo is pictured on a smartphone in this illustration taken, December 4, 2021. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab Feb 26 (Reuters) - Oil and gas producer Coterra Energy (CTRA.N), opens new tab missed Wall Street expect ...

Devon Energy Corporation (NYSE:DVN) is included among the 14 Best Affordable Dividend Stocks to Buy According to Analysts. Scotiabank Lowers Devon Energy (DVN) Price Target, Sees Balanced Risk-Reward Outlook On February 23, Scotiabank analyst Paul Cheng lowered his price recommendation on Devon Energy Corporation (NYSE:DVN) to $41 from $45. The analyst reiterated a Sector Perform rating on the stock. He told investors that fourth-quarter results are expected to have a neutral impact on the stock in the n ...

Devon Energy Corporation (NYSE:DVN) is included among the 14 Best LNG Stocks to Buy Now. Devon Energy (DVN) Announces Results for Q4 2025 Devon Energy Corporation (NYSE:DVN) is a leading independent energy company engaged in finding and producing oil and natural gas, with operations focused onshore in the United States. Devon Energy Corporation (NYSE:DVN) announced its Q4 2025 results on February 17, with the company’s adjusted EPS of $0.82 narrowly falling behind estimates by $0.01 after severe winter ...

Devon Energy Corporation (NYSE:DVN) is among the 15 Undervalued Momentum Stocks That Are Taking Off. Following Devon Energy Corporation’s (NYSE:DVN) Q4 2025 results, Nick Pope, an analyst at Roth Capital, raised his price target on the stock from $42 to $50 and reiterated a Buy rating on February 19. The analyst attributed the strong results to robust oil production, particularly by the Delaware Basin asset. For Q4 reported on February 17, Devon Energy Corporation (NYSE:DVN) reported revenue of $4.12 bi ...

Gaspar said the companies expect to realize $1 billion in annual pre-tax run-rate synergies by year-end 2027 , attributing the opportunity to scale, operational overlap, best-practice implementation, cost optimization, and improved infrastructure utilization. He noted the synergy targets are incremental to Devon’s existing business optimization program and framed them as “true operational and efficiency gains.” Gaspar also said that any potential capital savings tied to reduced activity would be incremental ...

Financial Data and Key Metrics Changes - Devon Energy generated $3.1 billion in free cash flow for 2025, enabling $2.2 billion in returns to shareholders through dividends, share buybacks, and debt retirement [16][17] - The quarterly dividend was increased by 9% to $0.24 per share, with plans for a further 31% increase post-merger [16][17] - The company ended the year with $1.4 billion in cash and a net debt to EBITDA ratio of less than one turn, indicating strong financial health [17] Business Line Data and Key Metrics Changes - Production optimization efforts led to oil production exceeding guidance, with a reserve replacement rate of 193% at a finding and development cost of just over $6 per BOE [10][11] - Capital spending finished 4% better than guidance, reflecting improved drilling and completion efficiencies [9][10] - The business optimization program achieved 85% of its $1 billion target within a year, with expectations to meet the full target by 2026 [12][22] Market Data and Key Metrics Changes - Devon's production for Q1 2026 is expected to average around 830,000 BOE per day, accounting for weather-related downtime [18] - The company anticipates a significant new share repurchase authorization of more than $5 billion following the merger [17] Company Strategy and Development Direction - The merger with Coterra Energy is expected to create substantial value through operational synergies, with a target of $1 billion in annual pre-tax run rate synergies by year-end 2027 [5][6] - The company is focusing on enhancing free cash flow generation to accelerate capital returns to shareholders [8] - Devon is exploring opportunities for portfolio rationalization and investments in innovative technologies, such as geothermal energy through Fervo Energy [15][61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capture synergies from the merger and deliver enhanced cash returns to shareholders [16][17] - The company is committed to continuous improvement and leveraging technology to enhance operational efficiency [12][13] - Management emphasized the importance of being in a strong financial position to explore long-term opportunities, both domestically and internationally [35][39] Other Important Information - Devon's capital efficiency improved by more than 15% from the preliminary 2025 outlook, with well productivity standing over 20% above the peer average [11][12] - The company is actively implementing AI-enabled technologies to optimize production and reduce costs [12][24] Q&A Session Summary Question: Insights on business optimization progress and key milestones for 2026 - Management reported achieving 85% of the $1 billion target and expressed confidence in reaching the full amount, emphasizing the role of technology in unlocking potential [22][23] Question: Plans for the Delaware position and future activity - Management highlighted the strength of the Delaware Basin and confirmed ongoing efforts to improve recovery and reduce downtime [28][29] Question: Exploration strategy and potential international opportunities - Management acknowledged exploring various international opportunities while maintaining confidence in the domestic market [34][39] Question: Insights on cash operating expenses and optimization efforts - Management noted consistent improvements in workflow optimization and condition-based maintenance contributing to lower costs [43][44] Question: Future capital allocation and productivity expectations - Management indicated that capital allocation will remain similar to previous years, with a focus on maintaining productivity levels across various regions [58][87] Question: Comments on the impressive Delaware results and repeatability - Management confirmed that the strong performance was due to both new well productivity and improved base operations, with expectations for continued success [74][76]

Financial Data and Key Metrics Changes - Devon Energy generated $3.1 billion in free cash flow for 2025, enabling $2.2 billion in returns to shareholders through dividends, share buybacks, and debt retirement [16][17] - The quarterly dividend was increased by 9% to $0.24 per share, with plans for a further 31% increase post-merger [16][17] - The company ended the year with $1.4 billion in cash and a net debt to EBITDA ratio of less than one turn, indicating strong financial health [17] Business Line Data and Key Metrics Changes - Production optimization efforts led to oil production exceeding guidance, with a reserve replacement rate of 193% at a finding and development cost of just over $6 per BOE [9][10] - Capital spending was 4% better than guidance, reflecting efficiencies in drilling and completion [9] - The business optimization program achieved 85% of its $1 billion target within a year, with expectations to meet the full target by 2026 [12][22] Market Data and Key Metrics Changes - The merger with Coterra Energy is expected to create significant synergies, with a target of $1 billion in annual pre-tax run rate synergies by year-end 2027 [5][6] - The Delaware Basin is highlighted as a key area for production, expected to generate more than half of total production and cash flow [5][6] Company Strategy and Development Direction - The merger with Coterra Energy is positioned as a transformative opportunity for value creation, leveraging complementary portfolios and operational efficiencies [5][6][8] - The company is focused on enhancing free cash flow generation and returning capital to shareholders through dividends and share repurchases [8][16] - Devon is exploring opportunities for portfolio rationalization and investments in innovative technologies, such as geothermal energy through Fervo Energy [15][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capture synergies from the merger and maintain strong operational performance [16][17] - The outlook for 2026 remains unchanged despite weather-related downtime in Q1, with production expected to average around 830,000 BOE per day [18][19] - Management emphasized a commitment to continuous improvement and operational efficiency as core to the company's culture [12][13] Other Important Information - The company has over 100 active work streams focused on driving sustained production gains while reducing capital requirements [12][13] - Devon's capital efficiency ranks among the best in the industry, with well productivity over 20% above peer averages [11] Q&A Session Summary Question: Business optimization progress and key milestones for 2026 - Management reported achieving 85% of the $1 billion target and expressed confidence in reaching the full amount, emphasizing the role of technology in unlocking potential [22][24] Question: Plans for the Delaware position and well targeting - Management confirmed ongoing focus on innovative technology and recovery improvements in the Delaware Basin, with plans to remain active in the area [28][29] Question: Exploration strategy and international opportunities - Management indicated interest in exploring international opportunities while maintaining confidence in the U.S. shale market, emphasizing long-term investments [34][39] Question: Cash operating expenses and optimization efforts - Management noted consistent improvements in workflow and maintenance approaches contributing to lower operating expenses [43][44] Question: 2026 program and capital allocation - Management indicated that capital allocation will remain similar to previous years, with a focus on maximizing value creation across regions [58] Question: Geothermal investment in Fervo Energy - Management highlighted the strategic partnership with Fervo Energy, emphasizing the potential for value creation through innovative geothermal technology [60][61]

Financial Data and Key Metrics Changes - In 2025, the company generated $3.1 billion in free cash flow, enabling $2.2 billion in returns to shareholders through dividends, share buybacks, and debt retirement [12][13] - The quarterly dividend was increased by 9% to $0.24 per share, with plans for a further 31% increase post-merger [12][13] - The company ended the year with $1.4 billion in cash and a net debt to EBITDA ratio of less than one turn, indicating strong financial health [13] Business Line Data and Key Metrics Changes - The company achieved a reserve replacement rate of 193% of production at a finding and development cost of just over $6 per BOE [7] - Production optimization efforts led to oil production exceeding guidance, with a significant contribution from new well performance and base production management [6][8] - Capital spending finished 4% better than guidance, reflecting efficiencies in drilling and completion [6] Market Data and Key Metrics Changes - The merger with Coterra Energy is expected to create substantial value through operational synergies, with a target of $1 billion in annual pre-tax run rate synergies by year-end 2027 [4][5] - The company plans to maintain a balanced commodity mix and geographic diversity to mitigate commodity price volatility [4] Company Strategy and Development Direction - The merger is positioned to enhance free cash flow generation, allowing for accelerated capital returns to shareholders [5] - The company is focused on continuous improvement and operational efficiency, embedding these principles into its culture [10] - Strategic transactions throughout 2025 delivered over $1 billion in value uplift to the enterprise NAV, indicating a proactive approach to portfolio management [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capture synergies from the merger and deliver enhanced cash returns to shareholders [12][13] - The company anticipates production averaging around 830,000 BOE per day in Q1 2026, despite weather-related downtime [14][15] - Management emphasized the importance of leveraging financial and operational strength to explore long-term opportunities beyond current operations [33] Other Important Information - The company has invested approximately 15% in Fervo Energy, a geothermal technology firm, indicating a strategic interest in renewable energy [11] - The business optimization program has captured 85% of its $1 billion target within a year, with ongoing efforts to enhance operational efficiency [9] Q&A Session Summary Question: Business optimization progress and key milestones for 2026 - Management reported achieving 85% of the $1 billion target and expressed confidence in reaching the full amount, emphasizing the role of technology in unlocking potential [17][19] Question: Plans for the Delaware position and well targeting - Management highlighted the Delaware Basin's potential and confirmed plans to utilize innovative technology and improve recovery rates [23][24] Question: Exploration strategy and international opportunities - Management acknowledged exploring international opportunities while emphasizing the importance of understanding domestic capabilities first [30][34] Question: Insights on cash operating expenses and optimization efforts - Management noted consistent improvements in workflow optimization and condition-based maintenance contributing to lower operating expenses [39][41] Question: 2026 program and capital allocation - Management indicated that capital allocation would remain similar to previous years, with a focus on maximizing value creation [53][54] Question: Dividend increase rationale - Management explained the substantial dividend increase as a reflection of confidence in the combined company's ability to generate free cash flow [65] Question: Delaware productivity and repeatability of results - Management confirmed that the strong fourth-quarter performance was driven by both new wells and improved base operations, with expectations for continued success [70][72]

Q4 2025 EARNINGS PRESENTATION February 17, 2026 NYSE: DVN DEVONENERGY.COM KEY HIGHLIGHTS Announced transformational merger with Coterra Energy Outperformed Q4 expectations across key value drivers 2. Business optimization accelerates value capture 3. Value beyond business optimization Significant free cash flow fuels shareholder returns 5. (1) Subject to Board approval following the close of Devon and Coterra merger. OUR DISCIPLINED MODEL CREATES SIGNIFICANT VALUE Q4 2025 EARNINGS PRESENTATION • 2 1. 4. Cre ...

Core Viewpoint - Devon Energy Corporation is positioned for growth through its strategic merger with Coterra Energy, aiming for significant cost savings and enhanced cash flow [2][6]. Group 1: Merger and Acquisition - Devon Energy is set to acquire Coterra Energy in an all-stock transaction, creating a combined entity valued at $58 billion focused on the Delaware Basin [2][3]. - The merger is part of a broader trend in U.S. shale consolidation, targeting $1 billion in annual pretax savings by 2027 [2][6]. - Devon will relocate its headquarters to Houston while maintaining a presence in Oklahoma City, with Coterra shareholders receiving 0.70 shares of Devon common stock for each Coterra share [3]. Group 2: Financial Performance and Analyst Recommendations - Devon Energy's stock is currently trading at approximately $40.58, reflecting a 1.09% increase, with a market capitalization of $25.46 billion [5]. - The average brokerage recommendation for Devon is 1.63, indicating a favorable outlook, with 67.7% of analysts giving a Strong Buy recommendation [4][6]. - Scotiabank analyst Paul Cheng has set a price target of $45 for Devon, suggesting a potential upside of 10.67% from its current trading price [1][6].