Core Viewpoint - Devon Energy Corporation (DVN) has shown a year-to-date stock gain of 1.6%, contrasting with a 22.8% decline in the Zacks Oil & Gas - Exploration and Production - United States industry and a 1.3% decline in the broader Zacks Oil and Energy sector [1] Performance Analysis - Over the past year, DVN's stock has declined by 32.7%, indicating a gradual recovery path, while Occidental Petroleum Corporation (OXY) experienced a 31.7% decline [2] - Devon Energy's return on invested capital (ROIC) stands at 8.71%, outperforming the industry average of 7.33% [15] Factors Contributing to Performance - The company benefits from a well-balanced commodity mix, focusing on oil, natural gas, and natural gas liquids, with a production replacement rate of 154% in 2024 [7] - DVN has a diversified, multi-basin portfolio of high-margin oil and gas assets, enhancing its asset base through strategic acquisitions [8] - The acquisition of Grayson Mill Energy's Williston Basin assets expanded net acreage from 123,000 to 430,000 acres, expected to triple production from 50,000 to 150,000 barrels of oil equivalent per day (Boe/d) [9] - A low-cost operating model supports profitability, with ongoing efforts to reduce drilling and completion expenses and streamline the workforce [10] Earnings Performance - DVN has reported strong earnings results, with an average earnings surprise of 6.09% over the last four quarters, despite missing expectations in the most recent quarter [12][13] - The Zacks Consensus Estimate for DVN's earnings per share for 2025 and 2026 has declined by 15.23% and 18.2%, respectively, in the past 60 days [17] Valuation - Devon Energy's shares are currently trading at a trailing 12-month Enterprise Value/Earnings before Interest Tax Depreciation and Amortization (EV/EBITDA TTM) of 3.61X, significantly lower than the industry average of 9.39X, indicating an inexpensive valuation [20] Summary - Devon Energy's multi-basin assets and balanced exposure to various commodities contribute positively to its performance, with a better return than the industry and an attractive valuation [21]

Core Viewpoint - Energy Transfer LP (ET) has shown a 2.3% increase in unit price over the past three months, underperforming the Zacks Oil and Gas - Production Pipeline - MLB industry's growth of 5.6% while the S&P 500 declined by 4.9% [1] Group 1: Company Overview - Energy Transfer operates a vast network of over 130,000 miles of pipelines across the United States, focusing on expanding its operations to meet growing power demands [2][6] - The company is a leading exporter of liquefied petroleum gas, serving 80 countries and territories, with major clients including Chevron and Shell [2] Group 2: Financial Performance and Growth - Energy Transfer plans to invest $6.1 billion in 2025 to enhance its asset base, indicating a commitment to growth through both organic initiatives and acquisitions [6] - The company has consistently made significant acquisitions, including the WTG acquisition, which expanded its natural gas pipeline network [7] - The Zacks Consensus Estimate predicts year-over-year earnings growth of 10.94% for 2025 and 2.75% for 2026 [14] Group 3: Revenue and Contracts - Approximately 90% of Energy Transfer's revenue is derived from long-term fee-based contracts, which mitigates risks associated with commodity price fluctuations [10] - The current quarterly cash distribution rate is 32.50 cents per common unit, with management having raised distribution rates 13 times in the past five years [16] Group 4: Market Position and Valuation - Energy Transfer units are currently trading at a trailing 12-month EV/EBITDA of 10.71X, which is lower than the industry average of 12.31X, suggesting the firm is undervalued [17] - The company's return on equity (ROE) stands at 11.56%, below the industry average of 14.22%, indicating room for improvement in profitability [20] Group 5: Insider Activity and Market Sentiment - Insiders have purchased over 44 million units worth $468 million from January 2021 to February 2025, reflecting confidence in the company's future prospects [12] - Insiders currently own nearly 10% of ET's units, which is significantly higher than peers in the industry [13] Group 6: Strategic Developments - Energy Transfer has entered a long-term agreement to supply natural gas to CloudBurst Data Center, marking its first commercial arrangement with a data center [9] - The firm is actively pursuing additional agreements with other data center developers to expand its customer base [9] Group 7: Conclusion - The combination of improving year-over-year earnings, extensive asset distribution, and a growing customer base positions Energy Transfer favorably for future growth [22]