Oil is on the rise again amid flaring tensions in the Middle East. That's not remotely shocking, given the Strait of Hormuz's importance. The Strait is effectively closed right now. Roughly 20% of the world's oil moves through that single sea passage, so the raging geopolitical conflict has upended the energy market.
While the conflict has been active for only a relatively short time, a trend appears to be emerging. When oil prices rise sharply, U.S. President Donald Trump de-escalates the conflict. There's no way to know if that will happen again, however, which is why long-term investors need to take a big-picture view of the energy sector with stocks like Chevron (CVX +0.12%) and ExxonMobil (XOM +0.03%).
Image source: The White House.
Predicting a geopolitical conflict is a risky investment approach Donald Trump is well aware that mid-term elections are coming up later in 2026. He is also aware that the geopolitical conflict in the Middle East is affecting U.S. citizens economically and emotionally. The hotter the conflict rages, the worse the mood is likely to get in the United States. The worse the mood, the more likely that elections don't go well for the President.
With oil spiking again, recently breaking over $100 per barrel, consumers start to worry about rising costs. That feeds into fears around inflation, which is running hotter than the Federal Reserve would like right now. That could lead to a rate hike, which would fuel concerns about a recession. And all of that comes as voters will be heading to the polls in a few months, with control of the Senate and the House up for grabs.
Brent Crude Oil Wholesale Spot Petroleum Price data by YCharts
It makes sense that Donald Trump would consider de-escalating the conflict to lower oil prices. Which appears to be something he's done before. However, as an investor, you should probably look at the bigger picture when considering investing in the energy sector. Historically, geopolitical events have gotten out of control before. There's no way to know what will actually happen this time around.
The energy sector is volatile The unfortunate truth is that Wall Street is so focused on the short-term impact of the current geopolitical conflict that investors have lost sight of the long term. Wall Street tends to be myopic, so this isn't surprising, but the long-term truth is that the energy sector is inherently volatile. This is just another episode of volatility. It is headline-grabbing, but it isn't really unusual.
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You could try to play the news-driven ups and downs in oil prices by buying and selling an upstream oil company like Devon Energy (DVN -0.55%). It operates in the U.S. market, so its production isn't impacted by the conflict. And its revenues and earnings will still benefit materially from higher energy prices. But it will also see revenues and earnings fall when energy prices fall. The stock is likely to trend along with energy prices if you believe you can predict the future of energy prices.
Most investors will be better off with a larger, more diversified energy investment, such as the integrated giants Exxon and Chevron. These companies are two of the world's largest energy businesses. While some of their production is directly impacted by the Middle East conflict, they have assets in other regions that are not. And they will benefit from rising oil prices, just as an upstream energy producer would. However, they also have midstream (pipeline) and downstream (chemical and refining) assets to help soften the blow when oil prices fall.
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In addition, Exxon and Chevron have two of the strongest balance sheets in the integrated energy peer group. Exxon's debt-to-equity ratio is roughly 0.2x, while Chevron's is 0.25x. That gives each of these energy giants the wherewithal to take on debt during downturns to support their businesses and dividends.
Bet on reliable dividends, not energy prices Chevron's dividend has been increased annually for 38 years. Exxon's dividend has been increased annually for 43 years. Those are incredible dividend records given the inherent volatility of the energy sector. It is a testament to the resilience of the two businesses across the entire energy cycle, not just the upside. That is a pattern worth following.
Most long-term investors should have some energy exposure given the important of oil and natural gas to the global economy. However, trying to time the political and geopolitical decisions of President Trump probably isn't the best investment approach when deciding on an energy stock. Most investors will be better off sticking with industry giants like Exxon and Chevron, focusing on their reliable dividend checks instead of oil prices. Right now, Chevron offers a 3.6% yield, with Exxon's 2.6% still well above the S&P 500 index's (^GSPC +0.05%) roughly 1% yield.
A pump jack operates at a well site leased by Devon Energy Production Company near Guthrie, Oklahoma September 15, 2015. REUTERS/Nick Oxford - TM3EB9F0WO901 Purchase Licensing Rights, opens new tab
CompaniesJuly 24 (Reuters) - U.S. oil and gas producer Devon Energy (DVN.N), opens new tab is weighing a potential sale of its Eagle Ford and Powder River shale assets that could fetch more than $4 billion, Bloomberg News reported on Friday, citing people familiar with the matter.
The potential divestment comes amid continued investor pressure on Devon to streamline its portfolio and focus on its core Permian Basin operations following its recent merger with Coterra Energy, with some shareholders urging faster asset sales.
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The report said Devon is expected to outline a strategic review of the assets when it reports earnings in early August, though it could still opt to retain the properties and no final decision has been made.
The assets are located in South Texas and Wyoming, respectively, and are considered non-core to Devon's Permian-focused strategy, the report said.
US shale producers have been selling assets to pay down debt following a consolidation wave totaling more than $450 billion in deals since the start of 2023, according to the report.
Devon Energy did not immediately respond to Reuters request for comment.
Reporting by Varun Sahay in Bengaluru; Editing by Shailesh Kuber
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Devon Energy (DVN - Free Report) ended the recent trading session at $44.88, demonstrating a +1.77% change from the preceding day's closing price. This change outpaced the S&P 500's 0.14% loss on the day. Meanwhile, the Dow experienced a drop of 0.01%, and the technology-dominated Nasdaq saw a decrease of 0.57%.
Shares of the oil and gas exploration company have appreciated by 1.64% over the course of the past month, underperforming the Oils-Energy sector's gain of 5.65%, and outperforming the S&P 500's gain of 0.25%.
Investors will be eagerly watching for the performance of Devon Energy in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 4, 2026. It is anticipated that the company will report an EPS of $1.3, marking a 54.76% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.25 billion, up 45.92% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.61 per share and revenue of $24.23 billion, which would represent changes of +17.6% and +40.98%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Devon Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 7.17% fall in the Zacks Consensus EPS estimate. Devon Energy is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Devon Energy's current valuation metrics, including its Forward P/E ratio of 9.56. This expresses a discount compared to the average Forward P/E of 10.03 of its industry.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 210, positioning it in the bottom 15% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Devon Energy (DVN - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this oil and gas exploration company have returned +4.1% over the past month versus the Zacks S&P 500 composite's +0.6% change. The Zacks Oil and Gas - Exploration and Production - United States industry, to which Devon Energy belongs, has gained 6% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Devon Energy is expected to post earnings of $1.27 per share for the current quarter, representing a year-over-year change of +51.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -12.4%.
The consensus earnings estimate of $4.61 for the current fiscal year indicates a year-over-year change of +17.6%. This estimate has changed -7.2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $4.79 indicates a change of +3.9% from what Devon Energy is expected to report a year ago. Over the past month, the estimate has changed -2.6%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Devon Energy.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Devon Energy, the consensus sales estimate for the current quarter of $6.25 billion indicates a year-over-year change of +45.9%. For the current and next fiscal years, $24.23 billion and $27.66 billion estimates indicate +41% and +14.1% changes, respectively.
Last Reported Results and Surprise HistoryDevon Energy reported revenues of $3.81 billion in the last reported quarter, representing a year-over-year change of -14.5%. EPS of $1.04 for the same period compares with $1.21 a year ago.
Compared to the Zacks Consensus Estimate of $4.16 billion, the reported revenues represent a surprise of -8.48%. The EPS surprise was +4%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Devon Energy is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Devon Energy. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
California Public Employees Retirement System increased its position in Devon Energy Corporation (NYSE:DVN – Free Report) by 12.7% in the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 1,324,549 shares of the energy company’s stock after acquiring an additional 149,508 shares during the period. California Public Employees Retirement System owned about 0.21% of Devon Energy worth $66,651,000 at the end of the most recent reporting period.
Several other hedge funds and other institutional investors have also added to or reduced their stakes in DVN. Tobam increased its holdings in shares of Devon Energy by 16.4% in the 4th quarter. Tobam now owns 1,633 shares of the energy company’s stock worth $60,000 after purchasing an additional 230 shares in the last quarter. TD Private Client Wealth LLC raised its stake in shares of Devon Energy by 3.4% in the fourth quarter. TD Private Client Wealth LLC now owns 7,152 shares of the energy company’s stock worth $262,000 after purchasing an additional 236 shares during the last quarter. Catalyst Financial Partners LLC lifted its holdings in shares of Devon Energy by 3.9% during the fourth quarter. Catalyst Financial Partners LLC now owns 6,712 shares of the energy company’s stock valued at $246,000 after purchasing an additional 254 shares in the last quarter. Cary Street Partners Investment Advisory LLC lifted its holdings in shares of Devon Energy by 21.0% during the fourth quarter. Cary Street Partners Investment Advisory LLC now owns 1,480 shares of the energy company’s stock valued at $54,000 after purchasing an additional 257 shares in the last quarter. Finally, Zions Bancorporation National Association UT boosted its position in shares of Devon Energy by 7.9% during the fourth quarter. Zions Bancorporation National Association UT now owns 3,527 shares of the energy company’s stock valued at $129,000 after buying an additional 258 shares during the last quarter. 69.72% of the stock is owned by institutional investors.
Devon Energy Stock Up 0.0% DVN stock opened at $43.84 on Monday. The company has a market cap of $27.25 billion, a price-to-earnings ratio of 12.21 and a beta of 0.38. The company has a debt-to-equity ratio of 0.48, a quick ratio of 0.94 and a current ratio of 1.01. The business’s 50-day moving average is $44.37 and its two-hundred day moving average is $44.13. Devon Energy Corporation has a fifty-two week low of $31.47 and a fifty-two week high of $52.71.
Devon Energy (NYSE:DVN – Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The energy company reported $1.04 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.06 by ($0.02). Devon Energy had a net margin of 13.71% and a return on equity of 15.22%. The firm had revenue of $3.81 billion for the quarter, compared to the consensus estimate of $4.34 billion. During the same quarter in the prior year, the firm earned $0.82 earnings per share. The company’s revenue for the quarter was down 14.5% compared to the same quarter last year. As a group, analysts forecast that Devon Energy Corporation will post 4.61 earnings per share for the current year.
Devon Energy Increases Dividend The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 15th were issued a $0.32 dividend. The ex-dividend date of this dividend was Monday, June 15th. This is a positive change from Devon Energy’s previous quarterly dividend of $0.24. This represents a $1.28 dividend on an annualized basis and a dividend yield of 2.9%. Devon Energy’s payout ratio is 35.65%.
Analyst Upgrades and Downgrades Several research firms recently commented on DVN. Morgan Stanley reduced their price objective on Devon Energy from $66.00 to $63.00 and set an “overweight” rating for the company in a report on Friday, June 26th. Susquehanna raised their price target on shares of Devon Energy from $52.00 to $57.00 and gave the company a “positive” rating in a report on Tuesday, April 21st. Tudor Pickering upgraded shares of Devon Energy from a “hold” rating to a “strong-buy” rating in a research note on Monday, April 20th. Raymond James Financial decreased their price objective on shares of Devon Energy from $66.00 to $64.00 and set a “strong-buy” rating for the company in a report on Thursday. Finally, Wolfe Research set a $67.00 price objective on shares of Devon Energy and gave the company an “outperform” rating in a research report on Monday, June 22nd. Two investment analysts have rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $59.32.
Get Our Latest Stock Report on Devon Energy
Insider Activity at Devon Energy In other Devon Energy news, SVP Adam M. Vela sold 24,342 shares of the stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $47.21, for a total value of $1,149,185.82. Following the transaction, the senior vice president directly owned 130,540 shares in the company, valued at approximately $6,162,793.40. This trade represents a 15.72% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Jeffrey L. Ritenour sold 70,029 shares of the stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $46.66, for a total transaction of $3,267,553.14. Following the completion of the transaction, the executive vice president owned 428,452 shares in the company, valued at $19,991,570.32. The trade was a 14.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 112,371 shares of company stock worth $5,258,059. 4.58% of the stock is owned by company insiders.
Devon Energy Company Profile (Free Report)
Devon Energy Corporation (NYSE: DVN) is an independent oil and gas exploration and production company headquartered in Oklahoma City, Oklahoma. The company focuses on the exploration, development, production and marketing of hydrocarbons, including crude oil, natural gas liquids (NGLs) and natural gas. Devon operates as an upstream energy company that acquires, evaluates and develops onshore resource plays using a combination of drilling, completion and production optimization techniques.
Core business activities include identifying and developing energy reserves, operating well programs and managing reservoir performance to generate production and cash flow.
Read More Five stocks we like better than Devon Energy Strait of Hormuz Tensions Spike Tanker Trade: These 2 Stocks Are Set to Benefit Shopify’s Quiet AI Strategy Could Be Its Biggest Advantage Yet Why These 3 Nuclear ETFs Are Getting a Fresh Look as AI Power Demand Rises 3 Aerospace Suppliers That Could Benefit as Aircraft Makers Face Bottlenecks Want to see what other hedge funds are holding DVN? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Devon Energy Corporation (NYSE:DVN – Free Report).
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In the latest close session, Devon Energy (DVN - Free Report) was down 1.08% at $42.93. The stock fell short of the S&P 500, which registered a gain of 0.38% for the day. Elsewhere, the Dow saw an upswing of 0.29%, while the tech-heavy Nasdaq appreciated by 0.62%.
The oil and gas exploration company's stock has climbed by 1.19% in the past month, exceeding the Oils-Energy sector's loss of 1.03% and lagging the S&P 500's gain of 1.61%.
The investment community will be paying close attention to the earnings performance of Devon Energy in its upcoming release. The company is slated to reveal its earnings on August 4, 2026. In that report, analysts expect Devon Energy to post earnings of $1.34 per share. This would mark year-over-year growth of 59.52%. At the same time, our most recent consensus estimate is projecting a revenue of $6.36 billion, reflecting a 48.54% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.71 per share and a revenue of $24.43 billion, indicating changes of +20.15% and +42.16%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Devon Energy. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.31% downward. Right now, Devon Energy possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Devon Energy has a Forward P/E ratio of 9.21 right now. This denotes a discount relative to the industry average Forward P/E of 9.97.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 214, this industry ranks in the bottom 14% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Devon Energy (DVN - Free Report) , which belongs to the Zacks Oil and Gas - Exploration and Production - United States industry.
When looking at the last two reports, this oil and gas exploration company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 2.62%, on average, in the last two quarters.
For the last reported quarter, Devon Energy came out with earnings of $1.04 per share versus the Zacks Consensus Estimate of $1 per share, representing a surprise of 4.00%. For the previous quarter, the company was expected to post earnings of $0.81 per share and it actually produced earnings of $0.82 per share, delivering a surprise of 1.23%.
Price and EPS Surprise
With this earnings history in mind, recent estimates have been moving higher for Devon Energy. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Devon Energy has an Earnings ESP of +1.50% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on August 4, 2026.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.
Hunting for 'earnings whispers' or companies poised to beat their quarterly earnings estimates is a somewhat common practice. But that doesn't make it easy. One way that has been proven to work is by using the Zacks Earnings ESP tool.
The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information.
Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.
Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.
Should You Consider Nextpower?The final step today is to look at a stock that meets our ESP qualifications. Nextpower (NXT - Free Report) earns a #1 (Strong Buy) 16 days from its next quarterly earnings release on July 30, 2026, and its Most Accurate Estimate comes in at $1.16 a share.
By taking the percentage difference between the $1.16 Most Accurate Estimate and the $1.04 Zacks Consensus Estimate, Nextpower has an Earnings ESP of +12.08%. Investors should also know that NXT is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
NXT is part of a big group of Oils and Energy stocks that boast a positive ESP, and investors may want to take a look at Devon Energy (DVN - Free Report) as well.
Devon Energy is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on August 4, 2026. DVN's Most Accurate Estimate sits at $1.36 a share 21 days from its next earnings release.
Devon Energy's Earnings ESP figure currently stands at +1.50% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.34.
NXT and DVN's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
Devon Energy is now a ~$50 billion upstream company, strengthened by the $28 billion Coterra acquisition and integrated assets. DVN targets $2 billion in synergies by YE-2027, driving improved FCF and capital efficiency, with $800 million quarterly FCF pre-merger. Post-merger guidance calls for 1.4 million barrels/day production, $4.9 billion capex, and up to 70% of FCF returned to shareholders.
In the latest trading session, Devon Energy (DVN - Free Report) closed at $43.31, marking a +2.12% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.28% for the day. Meanwhile, the Dow experienced a drop of 1.09%, and the technology-dominated Nasdaq saw an increase of 0.2%.
Shares of the oil and gas exploration company witnessed a loss of 3.77% over the previous month, beating the performance of the Oils-Energy sector with its loss of 4.3%, and underperforming the S&P 500's gain of 1.64%.
The investment community will be closely monitoring the performance of Devon Energy in its forthcoming earnings report. The company is scheduled to release its earnings on August 4, 2026. On that day, Devon Energy is projected to report earnings of $1.3 per share, which would represent year-over-year growth of 54.76%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.25 billion, up 45.85% from the year-ago period.
DVN's full-year Zacks Consensus Estimates are calling for earnings of $4.81 per share and revenue of $24.59 billion. These results would represent year-over-year changes of +22.7% and +43.09%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Devon Energy. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 12.9% rise in the Zacks Consensus EPS estimate. At present, Devon Energy boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Devon Energy is presently being traded at a Forward P/E ratio of 8.82. This indicates a discount in contrast to its industry's Forward P/E of 9.28.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 177, finds itself in the bottom 29% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow DVN in the coming trading sessions, be sure to utilize Zacks.com.
Devon Energy (DVN - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this oil and gas exploration company have returned -10.5% over the past month versus the Zacks S&P 500 composite's +2.1% change. The Zacks Oil and Gas - Exploration and Production - United States industry, to which Devon Energy belongs, has lost 7.2% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Devon Energy is expected to post earnings of $1.25 per share, indicating a change of +48.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +18.5% over the last 30 days.
The consensus earnings estimate of $4.85 for the current fiscal year indicates a year-over-year change of +23.7%. This estimate has changed +13.8% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $4.9 indicates a change of +1.2% from what Devon Energy is expected to report a year ago. Over the past month, the estimate has changed +5.4%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Devon Energy.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Devon Energy, the consensus sales estimate for the current quarter of $6.25 billion indicates a year-over-year change of +45.9%. For the current and next fiscal years, $24.59 billion and $27.89 billion estimates indicate +43.1% and +13.4% changes, respectively.
Last Reported Results and Surprise HistoryDevon Energy reported revenues of $3.81 billion in the last reported quarter, representing a year-over-year change of -14.5%. EPS of $1.04 for the same period compares with $1.21 a year ago.
Compared to the Zacks Consensus Estimate of $4.16 billion, the reported revenues represent a surprise of -8.48%. The EPS surprise was +4%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Devon Energy is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Devon Energy. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
July 01, 2026 16:05 ET | Source: Devon Energy Corporation
OKLAHOMA CITY, July 01, 2026 (GLOBE NEWSWIRE) -- Devon Energy Corp. (NYSE: DVN) today announced it will report second-quarter 2026 results on Tuesday, August 4, after the close of U.S. financial markets. The earnings release and presentation for the second-quarter 2026 results will be available on the company’s website at www.devonenergy.com.
On Wednesday, August 5, the company will hold a conference call at 10 a.m. CDT (11 a.m. EDT), which will consist primarily of answers to questions from analysts and investors. A webcast link to the conference call will be provided on Devon’s website at www.devonenergy.com. A replay will be available on the website following the call.
ABOUT DEVON ENERGY
Devon Energy is a leading oil and gas producer in the U.S. with a premier multi-basin portfolio anchored by our world-class position in the Delaware Basin, as well as high quality assets in the Anadarko Basin, Eagle Ford Shale, Marcellus Shale, Powder River Basin and Williston Basin. Devon’s disciplined capital allocation model is designed to achieve strong returns, generate resilient free cash flow and return capital to shareholders, while focusing on safe and sustainable operations. For more information, please visit www.devonenergy.com.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in DVN over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Devon Energy (DVN - Free Report) closed the most recent trading day at $41.32, moving -1.6% from the previous trading session. This move lagged the S&P 500's daily gain of 0.79%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq gained 1.52%.
Shares of the oil and gas exploration company witnessed a loss of 9.33% over the previous month, trailing the performance of the Oils-Energy sector with its loss of 4.84%, and the S&P 500's loss of 1.82%.
The investment community will be paying close attention to the earnings performance of Devon Energy in its upcoming release. The company is forecasted to report an EPS of $1.27, showcasing a 51.19% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $6.43 billion, indicating a 50.08% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.85 per share and a revenue of $24.62 billion, signifying shifts of +23.72% and +43.23%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Devon Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 14.17% upward. At present, Devon Energy boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Devon Energy currently has a Forward P/E ratio of 8.67. This represents a discount compared to its industry average Forward P/E of 9.1.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 106, placing it within the top 44% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
On June 22, 2026, Devon Energy Corp, a 10% owner, reported the indirect sale of 1,755,174 Class A shares of WaterBridge Infrastructure LLC (WBI +2.34%) for a transaction value of approximately $52.7 million, as disclosed in a SEC Form 4 filing.
Transaction summaryMetricValueShares sold (indirect)1,755,174Transaction value$52.7 millionTransaction value based on SEC Form 4 weighted average purchase price ($30.05).
Key questionsWhat was the mechanism behind the Class A share sale?
The shares sold originated from the redemption of 1,755,174 WBI Operating LLC units and the cancellation of an equal number of Class B shares, which were converted into Class A shares immediately prior to the open-market sale pursuant to Rule 144.Did this transaction affect any direct holdings?
No direct holdings were involved; all shares sold were held indirectly through Devon Holdco, a wholly owned subsidiary structure under Devon Energy.Does the insider retain a continuing economic interest in WaterBridge Infrastructure LLC?
Yes, Devon Holdco continues to hold 16,002,051 Class B shares and an equivalent number of WBI Operating LLC units, which are convertible into Class A shares on a one-for-one basis, preserving substantial potential ownership.How does the size of this sale relate to prior activity and remaining capacity?
This sale comprised 100.00% of Devon Holdco's indirect Class A position; future liquidity events will depend on conversions from the remaining Class B/OpCo units, as Class A holdings have been fully sold in this filing.Company overviewMetricValueMarket capitalization$1.46 billionRevenue (TTM)$628.62 millionNet income (TTM)$13.7 millionPrice (as of market close 2026-06-22)$30.05Company snapshotWaterBridge Infrastructure provides comprehensive water resource management services for upstream oil and gas operators, including water gathering, transportation, reclamation, and disposal.The firm operates a fee-based model leveraging a network of water infrastructure assets primarily in the Delaware Basin, with additional presence in the Eagle Ford and Arkoma regions.It serves exploration and production companies in the oil and gas sector, focusing on clients with significant water management needs in major U.S. shale plays.WaterBridge Infrastructure LLC specializes in water logistics and lifecycle management for the energy sector, supporting oil and gas producers through a dedicated infrastructure footprint in key shale basins. The company's scale and integrated service offerings enable efficient, compliant water handling solutions for its customers. Strategic positioning in high-activity regions provides a competitive advantage in serving the evolving needs of upstream energy clients.
What this transaction means for investorsWhile Devon Energy monetized a sizable stake worth roughly $52.7 million, the transaction represented a conversion of operating units into Class A shares before the sale, and the company continues to own 16 million Class B shares and an equal number of operating units that remain convertible into Class A stock. In other words, Devon still has significant economic exposure to WaterBridge.
Operationally, WaterBridge continues to build momentum. The company recently raised its full-year guidance for produced water handling volumes to 2.525 million to 2.725 million barrels per day and increased its Adjusted EBITDA outlook to $425 million to $465 million after reporting first quarter revenue of $201 million and Adjusted EBITDA of $102.9 million. Management said stronger customer demand and a more supportive backdrop for exploration and production activity gave it confidence to lift guidance. CEO Jason Long said the company's opportunities "are as compelling as they have ever been," while CFO Scott McNeely pointed to strengthening commercial demand across the Delaware Basin.
The company also recently announced plans to join several Alerian energy indexes and formed a special committee to evaluate converting from an LLC to a Texas corporation, a move management believes could broaden its investor base and improve liquidity over time.
For long-term investors, Devon's sale does not materially change the ownership picture. The bigger questions remain whether WaterBridge can execute on its higher guidance, expand its infrastructure network, and capitalize on growing demand for produced water management.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Devon Energy (DVN - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this oil and gas exploration company have returned -3.4% over the past month versus the Zacks S&P 500 composite's -1.4% change. The Zacks Oil and Gas - Exploration and Production - United States industry, to which Devon Energy belongs, has lost 9.3% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Devon Energy is expected to post earnings of $1.29 per share for the current quarter, representing a year-over-year change of +53.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +6.8%.
For the current fiscal year, the consensus earnings estimate of $4.97 points to a change of +26.8% from the prior year. Over the last 30 days, this estimate has changed +18.6%.
For the next fiscal year, the consensus earnings estimate of $4.92 indicates a change of -1% from what Devon Energy is expected to report a year ago. Over the past month, the estimate has changed +1.7%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Devon Energy.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Devon Energy, the consensus sales estimate of $6.43 billion for the current quarter points to a year-over-year change of +50.1%. The $24.72 billion and $27.8 billion estimates for the current and next fiscal years indicate changes of +43.8% and +12.4%, respectively.
Last Reported Results and Surprise HistoryDevon Energy reported revenues of $3.81 billion in the last reported quarter, representing a year-over-year change of -14.5%. EPS of $1.04 for the same period compares with $1.21 a year ago.
Compared to the Zacks Consensus Estimate of $4.16 billion, the reported revenues represent a surprise of -8.48%. The EPS surprise was +4%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Devon Energy is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Devon Energy. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
In the latest trading session, Devon Energy (DVN - Free Report) closed at $42.74, marking a -1.5% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.1%. Meanwhile, the Dow experienced a rise of 0.35%, and the technology-dominated Nasdaq saw a decrease of 0.43%.
Prior to today's trading, shares of the oil and gas exploration company had lost 3.88% was narrower than the Oils-Energy sector's loss of 7.58% and lagged the S&P 500's loss of 1.34%.
The upcoming earnings release of Devon Energy will be of great interest to investors. The company's upcoming EPS is projected at $1.29, signifying a 53.57% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $6.43 billion, up 50.08% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $4.97 per share and a revenue of $24.72 billion, demonstrating changes of +26.79% and +43.84%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Devon Energy. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 18.58% higher. At present, Devon Energy boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Devon Energy is currently exchanging hands at a Forward P/E ratio of 8.73. This expresses a discount compared to the average Forward P/E of 9.43 of its industry.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 44% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
June 24, 2026 06:55 ET | Source: Devon Energy Corporation
HOUSTON, June 24, 2026 (GLOBE NEWSWIRE) -- Devon Energy Corporation (NYSE: DVN) (“Devon”) today announced the final results of its previously announced offers to Eligible Holders (as defined herein) to exchange (each, an “Exchange Offer” and collectively, the “Exchange Offers”) any and all outstanding notes issued by Coterra Energy Inc., a direct, wholly owned subsidiary of Devon (“Coterra”), as set forth in the table below (the “Existing Coterra Notes”) for (1) new notes issued by Devon (the “New Devon Notes”) and (2) cash.
The following table sets forth the aggregate principal amount of each series of Existing Coterra Notes that were validly tendered (and not validly withdrawn) at or before 5:00 p.m., New York City time, on June 23, 2026 (the “Expiration Date”) and the aggregate principal amount of New Devon Notes to be issued in exchange therefor:
Notes Tendered at or Before
Expiration Date
Aggregate
Principal
Amount of
New Devon
Notes
Title of Series Aggregate Principal
Amount Outstanding Principal Amount Percentage 3.90% Senior Notes due 2027 $687,217,000 $585,855,000 85.25% $627,099,000
3.90% Senior Notes due 2027(1) $62,718,000 $41,244,000 65.76% 4.375% Senior Notes due 2029 $433,171,000 $385,960,000 89.10% $447,554,000
4.375% Senior Notes due 2029(1) $66,812,000 $61,594,000 92.19% 5.60% Senior Notes due 2034 $500,000,000 $465,815,000 93.16% $465,815,0005.40% Senior Notes due 2035 $750,000,000 $671,688,000 89.56% $671,688,0005.90% Senior Notes due 2055 $750,000,000 $734,180,000 97.89% $734,180,000 (1) Represents senior notes issued by Coterra Energy Operating Co., an indirect wholly owned subsidiary of Devon previously known as Cimarex Energy Co. (the “Existing Coterra OpCo Notes”).
The Exchange Offers and related previously completed consent solicitations (each, a “Consent Solicitation” and collectively, the “Consent Solicitations”) were made pursuant to the terms and subject to the conditions set forth in the offering memorandum and consent solicitation statement dated as of May 22, 2026 (as amended by the press release issued on June 8, 2026, the “Offering Memorandum and Consent Solicitation Statement”). The settlement of the Exchange Offers is expected to take place on or about June 25, 2026. Devon previously announced that the previous deadline for Eligible Holders to tender their Existing Coterra Notes and be eligible to receive, for each $1,000 principal amount of Existing Coterra Notes, the applicable Total Exchange Consideration (as defined in the Offering Memorandum and Consent Solicitation Statement) was extended to the Expiration Date. As a result, the consideration to be paid for Existing Coterra Notes validly tendered (i) at or before 5:00 p.m., New York City time, on June 5, 2026 and (ii) following such time, but at or before the Expiration Date, will be the same.
The New Devon Notes will be issued pursuant to the indenture, dated as of August 28, 2024, by and between Devon and U.S. Bank Trust Company, National Association, as trustee (the “Devon Base Indenture”), as supplemented in relation to the New Devon Notes by a supplemental indenture to be entered on or about the settlement date. The New Devon Notes will be general unsecured obligations of Devon and will rank equally with all of Devon’s other unsecured and unsubordinated debt obligations from time to time outstanding. The foregoing summaries of the Devon Indenture and the New Devon Notes do not purport to be complete and each is qualified in its entirety by reference to the applicable full text of the Devon Base Indenture and the supplemental indenture to be entered into.
The Exchange Offers and Consent Solicitations were made only to holders of Existing Coterra Notes who completed and returned an eligibility letter confirming that they were persons (a) in the United States reasonably believed to be “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), or (b) outside the United States who were not “U.S. persons” as defined in Rule 902 under the Securities Act and who were eligible to participate in the Exchange Offer pursuant to the laws of the applicable jurisdiction, as set forth in the eligibility letter (“Eligible Holders”).
Eligible Holders of Existing Coterra Notes who were located in or a resident of Canada were also required to complete and return a Canadian supplemental eligibility letter to D.F. King & Co., Inc. (the “Information Agent” and the “Exchange Agent”) establishing their eligibility to participate in the Exchange Offers and providing supplemental information required for Canadian securities regulatory reporting purposes. Each holder of Existing Coterra Notes was, by participating in any Exchange Offer, deemed to represent and warrant that it was not located in or a resident of any province or territory of Canada, and that it was not tendering any Existing Coterra Notes on behalf of a beneficial owner that was located in or a resident of Canada, unless either: (i) such holder completed and returned a Canadian supplemental eligibility letter to the Information Agent, or (ii) such holder was an account manager outside Canada acting on behalf of a Canadian beneficial owner on a fully discretionary basis, and no acts in furtherance of the exchange of such beneficial owner’s Existing Coterra Notes took place in Canada.
The complete terms and conditions of the Exchange Offers and Consent Solicitations are described in the Offering Memorandum and Consent Solicitation Statement, a copy of which may be obtained by Eligible Holders by contacting D.F. King & Co., Inc., the Exchange Agent and Information Agent in connection with the Exchange Offers and Consent Solicitations, by sending an email to [email protected] or by calling (877) 478-5045 (U.S. toll-free) or (212) 434-0035 (banks and brokers). The eligibility letter is available electronically at: www.dfking.com/dvn.
This press release does not constitute an offer to sell or purchase, or a solicitation of an offer to sell or purchase, or the solicitation of tenders or consents with respect to, any security. This press release should not be construed as an offer to sell or purchase, or a solicitation of an offer to sell or purchase, or the solicitation of tenders or consents with respect to, any Devon securities or other securities by Coterra. No offer, solicitation, purchase or sale was made in any jurisdiction in which such an offer, solicitation, or sale would be unlawful. The Exchange Offers and Consent Solicitations were made to Eligible Holders solely pursuant to the Offering Memorandum and Consent Solicitation Statement and only to such persons and in such jurisdictions as permitted under applicable law.
The New Devon Notes have not been registered with the Securities and Exchange Commission (the “SEC”) under the Securities Act or any state or foreign securities laws. Therefore, the New Devon Notes may not be offered or sold in the United States or to any U.S. person absent registration, except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. In connection with the Exchange Offers, Devon expects to enter into a registration rights agreement, pursuant to which Devon will be obligated to use commercially reasonable efforts to file with the SEC and cause to become effective a registration statement with respect to an offer to exchange each series of New Devon Notes for new notes within 450 days of the settlement date. In addition, Devon has agreed to use commercially reasonable efforts to file a shelf registration statement to cover resales of the New Devon Notes under the Securities Act in certain circumstances.
ABOUT DEVON ENERGY
Devon Energy is a leading oil and gas producer in the U.S. with a premier multi-basin portfolio with assets in the Anadarko Basin, Eagle Ford, Marcellus Shale, Powder River Basin, Williston Basin, anchored by a world-class position in the Delaware Basin. Devon’s disciplined cash-return business model is designed to achieve strong returns, generate resilient free cash flow and return capital to shareholders, while focusing on safe and sustainable operations. For more information, please visit www.devonenergy.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release includes “forward-looking statements” within the meaning of federal securities laws. Such statements include those concerning statements about the timing of the Exchange Offers and Consent Solicitations, including the expected settlement date. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control. Consequently, actual future results could differ materially and adversely from our expectations due to a number of factors, including, but not limited to: risks relating to the terms and timing of the Exchange Offers and the Consent Solicitations, the number of Existing Coterra Notes tendered and not validly withdrawn, conditions in financial markets, investor response to the Exchange Offers and the Consent Solicitations, and any other risks and uncertainties discussed in the Offering Memorandum and Consent Solicitation Statement. The forward-looking statements included in this press release speak only as of the date of this press release, represent management’s current reasonable expectations as of the date of this press release and are subject to the risks and uncertainties identified above. We cannot guarantee the accuracy of our forward-looking statements, and readers are urged to carefully review and consider the various disclosures made in the Offering Memorandum and Consent Solicitation Statement. All subsequent written and oral forward-looking statements attributable to Devon, Coterra or persons acting on its behalf are expressly qualified in their entirety by the cautionary statements above. We do not undertake, and expressly disclaim, any duty to update or revise our forward-looking statements based on new information, future events or otherwise.
Devon Energy remains a "Buy," with shares offering solid value despite recent oil price volatility and a technical correction from March highs. DVN delivered strong Q1 free cash flow of $816 million, maintained capital discipline, and ended the quarter with a clean balance sheet and $4.8 billion in liquidity. EPS growth is projected to accelerate into FY 2026 and beyond, with 17 recent sellside upgrades and a 12.6% FCF yield supporting the investment case.
Activist investor TOMS Capital Investment Management has acquired a sizable stake in Devon Energy and is pressing the U.S. shale operator to sell assets or put itself up for sale, five people familiar with the matter said.
Key Takeaways Devon's five-basin shale footprint supports operational flexibility and long-term growth.The Coterra merger strengthens Devon's Delaware Basin position with a larger asset base.Devon's shares rose 25.1% in the past year, while ROE trailed the industry average. Devon Energy Corporation (DVN - Free Report) is a leading U.S. shale producer with a diversified portfolio of oil and gas assets across five major basins — Delaware, Eagle Ford, Anadarko, Williston and Powder River. This multi-basin footprint enhances operational flexibility, mitigates regional risks and enables the company to allocate capital to its most attractive opportunities throughout commodity cycles. Additionally, Devon’s merger with Coterra Energy strengthens its position in the Delaware Basin by creating a larger, high-quality asset base.
The Delaware Basin is Devon’s largest production driver, while its Anadarko and Eagle Ford assets generate stable cash flow and capital-efficient output. The company’s ability to flexibly allocate capital across these assets strengthens operational resilience and supports its disciplined growth strategy.
Devon’s diversified multi-basin portfolio helps mitigate the impact of production disruptions in any single basin while supporting stable overall output. This strategy also drives consistent free cash flow generation, providing the financial flexibility to fund dividends, share repurchases and strategic growth initiatives.
Supported by efficient operations, rigorous cost discipline, a strong balance sheet and prudent capital allocation, Devon is well positioned to capitalize on long-term energy demand growth. Its diversified multi-basin portfolio generates resilient cash flows, supports sustainable shareholder returns and provides a solid foundation for long-term growth.
How Diversified Basin Exposure Boosts Oil & Gas PerformanceMulti-basin assets can significantly strengthen the long-term outlook for oil and gas companies by providing geographic diversification, operational flexibility and reduced risk. A presence across multiple shale basins enables operators to allocate capital more efficiently, adjust drilling activity in response to changing market conditions and lessen their exposure to basin-specific regulatory challenges and commodity price fluctuations.
Oil and Energy giants like Occidental Petroleum (OXY - Free Report) and EOG Resources (EOG - Free Report) also benefit from diversified multi-basin portfolios. Occidental’s operations span the Permian, DJ and Powder River basins, complemented by international assets, while EOG leverages premium acreage in the Permian, Eagle Ford and Powder River basins to maintain low-cost, high-margin production and support long-term growth.
Devon Energy’s Estimates Moving UpThe Zacks Consensus Estimate for 2026 and 2027 earnings per share has increased 0.20% and 1.23%, respectively, in the past 60 days.
Image Source: Zacks Investment Research
Devon’s Price PerformanceDevon’s shares have gained 25.1% in the past year, outperforming the Zacks Oil & Gas- Exploration and Production- United States industry’s decline of 3.1% and the broader Zacks Oil and Energy sector’s 23.8% rally.
Image Source: Zacks Investment Research
DVN Stock Returns Lower Than IndustryThe return on equity (“ROE”) measures how well a company generates returns from the shareholders’ equity. ROE indicates how well management utilizes investors' funds to expand the business.
Devon’s ROE has underperformed the industry average in the trailing 12 months. ROE of DVN was 15.22% compared with the industry average of 16.04%.
Image Source: Zacks Investment Research
DVN's Zacks RankDevon currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Listen to the audio version of this article (generated by AI).
The “Fab 10” reshapes the AI trade… a connected billionaire’s quiet exit… why oil isn’t done yet… this bull market is broader than you think… why Louis says this is “a very special time” in the market One of the most connected figures in Silicon Valley recently made a move most retail investors haven’t noticed yet.
He’s a legendary early-stage investor – someone who’s been ahead of every major tech wave of the last 25 years. And he recently filed paperwork showing he’s sold every publicly held share of Nvidia (NVDA), Apple (AAPL), and Microsoft (MSFT).
This wasn’t a trim. It was a full exit from the stocks that most retail investors are still holding.
So, what does he know that most don’t?
Well, let’s back up and consider what’s happening to the AI trade itself…
You’ve heard of the Magnificent 7. It includes the three stocks I just flagged plus Alphabet (GOOG), Amazon (AMZN), Meta (META), and Tesla (TSLA). That group defined the market for the better part of two years.
But analysts are now talking about something new – the “Fab 10.”
It’s the original Mag 7 with three massive players joining the roster – SpaceX (SPCX), following its landmark IPO, OpenAI, the creator of ChatGPT, which is expected to go public soon, and Anthropic, which is also eyeing an IPO.
The Fab 10 tells us something important about how AI is developing…
It’s no longer just a software story. Increasingly, it’s a story of physical inputs – the core infrastructure that makes AI run. Data centers, power, chips, and rare earth mining. The buildout requires enormous capital, and it’s attracting a very different kind of investor.
Including, it turns out, our Silicon Valley insider.
While he’s been exiting the Mag 7 names, he’s been directing capital toward private companies in energy, nuclear infrastructure, physical AI buildout, and natural resources. Basically, the back end of the AI economy that makes it all run.
Now, most of those private deals aren’t available to retail investors. But here’s where our technology expert Luke Lango, editor of Innovation Investor, and Dan Ferris, editor of The Ferris Report at Stansberry Research, come in.
They’ve identified seven publicly traded stocks that mirror the same sectors this insider is buying into privately – what they’re calling a “backdoor” portfolio. These are essential infrastructure companies that the AI boom cannot run without.
For the full story – who this Silicon Valley legend is, what exactly he’s doing with his money, and Luke and Dan’s complete seven-stock backdoor portfolio – click here. You’ll watch a conversation between Luke and Dan that – just by itself – will put you ahead of most investors thinking about the AI trade today.
Now, let’s shift gears from AI to the energy story – after all, they’re more connected than most people realize.
Should you sell your oil plays now? As I write on Thursday morning, West Texas Intermediate crude trades under $74 a barrel – almost 35% below its early-April high.
The U.S.-Iran peace deal has taken enormous pressure off the market, and with the Strait of Hormuz slated to officially reopen tomorrow, it’s fair to ask…
Is it time to get out of oil?
Tom Yeung, lead analyst for our global macro expert Eric Fry in Fry’s Investment Report, just made a compelling case for staying put – and history is his guide.
In his Weekly Update on Tuesday, he reviewed past commodity supply shocks for the closest parallels to today’s oil market. His argument starts with a basic principle:
When supply suddenly falls, there’s only a limited amount of inventory sitting around to absorb the shock.
Prices often have to move quickly to balance supply and demand.
One of the best historical matches Tom found was cocoa futures between 2002 and 2007.
In September 2002, a civil war in the Ivory Coast – the source of 40% of the world’s cocoa – sent prices surging on fears of supply disruption. But the physical flow of cocoa never actually stopped, so prices quickly fell back as traders unwound their bets.
The real spike came years later, when war-related underinvestment finally triggered actual shortages. But by then, the market had already used up its easy fixes.
There are parallels today given how the Russian/Ukraine war was already impacting global oil supplies before the Middle East flare-up.
Here’s Tom with more:
Today’s oil market faces a similar challenge.
The first spike (Russia’s invasion of Ukraine) disrupted only one major supplier. The current disruption is hitting multiple countries across the Persian Gulf.
At the same time, U.S. production growth is slowing…
Many of America’s most productive drilling locations are now running out, making it harder to bring large amounts of new supply online quickly.
Tom notes that once a market enters a second supply-driven squeeze, high prices can persist longer than many investors expect.
Here’s his bottom line:
When energy and soft commodity supply chains are running with little slack, consumable commodity prices have a habit of staying higher for longer than people expect.
Given this, Tom and Eric recommend staying invested in the blue-chip energy producers they hold in Fry’s Investment Report.
And let me share one of them with you…
Devon Energy Corp. (DVN): a natural gas blue chip with huge upside potential Devon is one of the leading producers in the Delaware Basin.
For years, it has produced more natural gas than the region’s pipeline system could efficiently move to major markets. That bottleneck forced the company to sell some of its gas at deeply discounted prices.
But new pipelines are now opening, allowing Devon to send more gas to Gulf Coast customers and to LNG export facilities, where prices are typically higher. As those transportation constraints ease, Devon should be able to earn more money from the same gas production.
Despite improving fundamentals, DVN trades at less than nine times expected earnings, a valuation that remains well below many of its energy-sector peers.
As I write on Thursday, DVN trades at $41.92 – well below Eric’s buy-under-$47 threshold, making this a timely entry point for investors who want exposure to the energy trade.
If you want more investment ideas from Eric, his free “Sell This, Buy That” broadcast gives away seven free trades – including three lesser-known alternatives to Nvidia, Amazon and Tesla – that he believes could double your money in the next 12 to 24 months.
Some of the picks tie into the AI infrastructure and energy themes we’re covering today. You can watch it here for free.
This bull market is wider than you think AI infrastructure, energy, and now, something that doesn’t make as many headlines – but should.
Brian Hunt, editor of the free daily e-letter Money & Megatrends, has been tracking a signal that suggests the bull market is healthier and broader than most investors realize.
In his Tuesday issue, he flagged two manufacturing ETFs that just hit new all-time highs.
These aren’t flash-in-the-pan AI stocks. These are boring, stodgy, industrial companies, which makes them a far better litmus test for how the broader economy is actually performing outside of the AI trade.
Here’s Brian:
[These new all-time highs] are very bullish economic signals…
These firms operate with little fanfare, providing critical equipment and services the U.S. economy cannot function without.
Our factories, vehicles, homes, and cities cannot function without their specialized pumps, motors, filters, fans, valves, gaskets, wiring, bearings, and switches. And their businesses are doing well.
The two ETFs are the Invesco S&P SmallCap Industrials ETF (PSCI) which holds a diversified basket of smaller, lesser-known U.S. manufacturers, and the Industrial Select Sector SPDR Fund (XLI), which holds the largest names in American industry – Caterpillar (CAT), Boeing (BA), Deere & Co. (DE), and GE Vernova (GEV), among others.
Both ETFs hitting new highs simultaneously is a powerful signal.
Back to Brian:
The fortunes of the components of these ETFs rise and fall with the health of the American economy. And right now, their stocks are soaring.
This exceptional price strength means the economy is doing very well…
The new highs in XLI and PSCI tell us to expect to see reports of strong economic activity about six months from now. Please manage your financial affairs accordingly.
If you’re only watching the AI and energy trades, you may be missing the broader story. U.S. manufacturing is in a bull market of its own – and PSCI and XLI are two straightforward ways to participate.
For more from Brian, he sends out a free issue of Money & Megatrends every day the market is open. They’re filled with actionable insights and specific stock tickers for your consideration. To join him, just click here.
Putting it all together The Fab 10, energy, manufacturing – three different corners of the market, all pointing in the same direction.
And note something else…
Our analysts, across the board, are bullish.
Not recklessly so. And not uniformly confident about every corner of the market. But they’re all finding profitable ways to put money to work right now – even as naysayers continue to proclaim impending doom.
Yes, the bears deserve a hearing and an honest assessment of their concerns. But so does a market that keeps making new highs.
On that note, let’s hear it straight from legendary investor Louis Navellier in Monday’s Flash Alert in Growth Investor:
The analyst community continues to revise their estimates higher. The market has broadened out…
If you look at your accounts if you’ve been with me for a while, your average gain’s probably at least 180% right now. And you should be approaching 40% up year to date.
If you have cash to deploy, I would wait for pullbacks. I do expect a strong finish to June. I expect us to rally going into July 4. Maybe we pause, stutter step for a week or so, and then we have another great earnings announcement season.
It’s really a very special time, the best market in over 30 years. So, I want you to enjoy it.
Bottom line: We have a multi-trillion-dollar AI capex boom unfolding with years of runway ahead… earnings revisions trending upward… and a rally that’s widening beyond its usual suspects…
Investing is always about assessing the odds, so caution remains warranted – but today, the odds favor staying invested.
Don’t throw caution to the wind. Be mindful of your goals and your timeline. But this is a money-making market. As Brian wrote above, “Please manage your financial affairs accordingly.”
In the latest close session, Devon Energy (DVN - Free Report) was down 1.08% at $42.12. The stock fell short of the S&P 500, which registered a gain of 1.09% for the day. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, added 1.91%.
The oil and gas exploration company's stock has dropped by 12.13% in the past month, falling short of the Oils-Energy sector's loss of 7.57% and the S&P 500's gain of 0.29%.
The upcoming earnings release of Devon Energy will be of great interest to investors. In that report, analysts expect Devon Energy to post earnings of $1.29 per share. This would mark year-over-year growth of 53.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.39 billion, up 49.16% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.97 per share and revenue of $24.72 billion, indicating changes of +26.79% and +43.84%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Devon Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 11.09% fall in the Zacks Consensus EPS estimate. Right now, Devon Energy possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Devon Energy is currently trading at a Forward P/E ratio of 8.57. This denotes a discount relative to the industry average Forward P/E of 9.26.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 108, this industry ranks in the top 45% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Devon Energy Corporation (DVN) J.P. Morgan Energy, Power & Renewables Conference 2026 June 23, 2026 9:45 AM EDT
Company Participants
Clay Gaspar - President, CEO & Director
Conference Call Participants
Arun Jayaram - JPMorgan Chase & Co, Research Division
Presentation
Arun Jayaram
JPMorgan Chase & Co, Research Division
Yes. Good morning. Arun Jayaram from JPMorgan's E&P and OFS Research team. Thanks for joining us for day 1 of our conference. This is one of the presentations that I really circled ahead of the conference because it's really an opportunity to meet with Devon Energy, who recently completed the merger transaction with Coterra and so Devon has been a little bit off the grid as they've gone through the approval process for the merger, but this is the first conference that CEO and President, Clay Gaspar, can really tell the story about the industrial logic of the deal. So again, Clay, welcome to New York. Thanks for joining us.
Clay Gaspar
President, CEO & Director
Yes. Thank you, Arun. It's great to be here. Great to be back -- out and meeting with investors. And when you have to go quiet, you're so anxious to tell the story. So happy to be here today and part of the conference.
Question-and-Answer Session
Arun Jayaram
JPMorgan Chase & Co, Research Division
Well, let's go ahead and start with the Devon-Coterra merger that was announced in February. For the generalists in the audience, can you elaborate on, call it, the industrial logic of why this deal made sense to you?
Clay Gaspar
President, CEO & Director
Yes. Certainly, I'll start there. When you look at the position that Coterra was in solo, that Devon was in solo, we're both in a really strong position, have incredible inventory, but always looking to improve. I think that's the nature of the business. And when you
June 16, 2026 16:05 ET | Source: Devon Energy Corporation
HOUSTON, June 16, 2026 (GLOBE NEWSWIRE) -- Devon Energy Corp. (NYSE: DVN) today announced Clay Gaspar, President and CEO will participate in a fireside chat at the J.P. Morgan Energy, Power, Renewables & Mining Conference.
The fireside chat is scheduled for 8:45 a.m. Central time (9:45 a.m. Eastern time) on Tuesday, June 23, 2026 and will be webcast live on Devon’s website at www.devonenergy.com. A replay of the webcast will be available for 30 days following the event.
ABOUT DEVON ENERGY
Devon Energy is a leading oil and gas producer in the U.S. with a premier multi-basin portfolio anchored by our world-class position in the Delaware Basin, as well as high quality assets in the Anadarko Basin, Eagle Ford Shale, Marcellus Shale, Powder River Basin and Williston Basin. Devon’s disciplined capital allocation model is designed to achieve strong returns, generate resilient free cash flow and return capital to shareholders, while focusing on safe and sustainable operations. For more information, please visit www.devonenergy.com.
On June 15, 2026, Devon Energy Corp DVN shares fell 3.9%, bringing the current price to $43.53. The stock has fluctuated within a 52-week range of $31.45 to $52.71, reflecting significant volatility in the market. This recent decline follows a trend where the stock has dropped 11.4% over the past month, despite a year-to-date increase of 20.3% and a one-year gain of 27.2%.
GF Value™ verdict: Current price is $43.53, compared to GF Value™ of $49.58, indicating it is 12.2% undervalued.GF Score™: 75/100, categorized as Above Average, suggesting solid long-term performance potential.Most notable signal: Insiders sold $5.3M in shares over the last three months, indicating possible caution. Is DVN Overvalued or Undervalued? Devon Energy Corp DVN is currently trading at $43.53, which is 12.2% below its GF Value™ of $49.58. This undervaluation suggests a potential opportunity for investors, as the stock may be priced lower than its intrinsic value. The GF Valuation label categorizes DVN as Modestly Undervalued, indicating that there is a margin of safety for potential investors. However, it is important to note that while the current price presents an attractive entry point, the company’s recent insider selling activity may imply some caution in the market.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. This valuation approach considers various factors, including the company's financial health and industry trends, providing a comprehensive view of the stock’s true worth.
How Does DVN's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 12.1x 7.9x Forward P/E 7.8x N/A Devon Energy's current P/E (TTM) of 12.1x is significantly above its 5-year median P/E of 7.9x, suggesting that the stock is trading at a premium compared to its historical valuation metrics. This P/E analysis aligns with the GF Value™ verdict, indicating that while the stock may appear undervalued based on GF Value™, its historical P/E suggests market participants may have high expectations for future growth.
What Does DVN's GF Score™ Tell Us? Metric Rating GF Score™ 75 Financial Strength 6/10 Profitability 7/10 Growth 8/10 Valuation 10/10 Momentum 1/10 The GF Score™ of 75/100 indicates that Devon Energy has favorable characteristics for long-term investment. Its strongest area is the Valuation rank, receiving a perfect score of 10/10, suggesting that the stock is attractively priced relative to its intrinsic value. However, the Momentum rank of 1/10 indicates weakness in the stock's recent price performance, which could signal caution for potential investors. Overall, while the financial strength and profitability scores are solid, the low momentum score highlights recent challenges the company faces in the market.
What Are Insiders Doing with DVN Stock? In the past three months, insiders of Devon Energy have sold a total of $5.3 million in shares, with no reported buying activity. This pattern of selling could suggest that insiders may have concerns about the stock's near-term performance or the company's outlook. While insider selling does not always indicate negative sentiment, it is an important factor for investors to consider when evaluating the stock's potential.
What This Means for Investors Based on the GF Value™ assessment, Devon Energy Corp DVN is currently undervalued, presenting a potential opportunity for discerning investors. However, caution is warranted due to recent insider selling and low momentum rankings, which indicate some risk in the short-term performance of the stock.
For the complete analysis, visit the Devon Energy Corp DVN stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is DVN's GF Score™?
DVN has a GF Score™ of 75/100, indicating it is ranked as Above Average, suggesting solid long-term performance potential.
Is DVN overvalued or undervalued?
DVN is currently undervalued, trading 12.2% below its GF Value™ of $49.58.
What is DVN's P/E ratio?
DVN has a P/E (TTM) of 12.1x, which is significantly above its 5-year median P/E of 7.9x, indicating it is trading at a premium compared to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Devon Energy (DVN - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this oil and gas exploration company have returned -8.5% over the past month versus the Zacks S&P 500 composite's +0.5% change. The Zacks Oil and Gas - Exploration and Production - United States industry, to which Devon Energy belongs, has lost 2.1% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Devon Energy is expected to post earnings of $1.21 per share for the current quarter, representing a year-over-year change of +44.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -17.5%.
The consensus earnings estimate of $4.73 for the current fiscal year indicates a year-over-year change of +20.7%. This estimate has changed -17.9% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $4.95 indicates a change of +4.7% from what Devon Energy is expected to report a year ago. Over the past month, the estimate has changed +7.4%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Devon Energy is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Devon Energy, the consensus sales estimate for the current quarter of $6.28 billion indicates a year-over-year change of +46.5%. For the current and next fiscal years, $24.39 billion and $27.93 billion estimates indicate +41.9% and +14.5% changes, respectively.
Last Reported Results and Surprise HistoryDevon Energy reported revenues of $3.81 billion in the last reported quarter, representing a year-over-year change of -14.5%. EPS of $1.04 for the same period compares with $1.21 a year ago.
Compared to the Zacks Consensus Estimate of $4.16 billion, the reported revenues represent a surprise of -8.48%. The EPS surprise was +4%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Devon Energy is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Devon Energy. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
May 21, 2026 06:55 ET | Source: Devon Energy Corporation
HOUSTON, May 21, 2026 (GLOBE NEWSWIRE) -- Devon Energy Corporation (NYSE: DVN) announced the successful acquisition of 16,300 net undeveloped acres in the core of the Delaware Basin in Lea and Eddy Counties, New Mexico, for approximately $2.6 billion, or approximately $161,500 per net acre, through the Bureau of Land Management (“BLM”) Oil and Gas Lease Sale. This acquisition bolsters the premier Delaware Basin positions in the industry, extends inventory life, and is accretive to net asset value per share.
KEY HIGHLIGHTS
Acquisition adds approximately 400 net locations normalized to 2-mile laterals, with expected strong well economics and low breakevens supported by:High Net Revenue Interest: Federal leases carry an 87.5% net revenue interest (“NRI”), with 10-year terms across all depths, more favorable than NRIs typical of state and fee leases in the region.Contiguous Acreage Position: Provides the ability to drill longer laterals and lower costs through co-development and multi-well pad development.Top-Tier Productivity: Highly productive wells across multiple zones expected to compete for near-term capital.Leveraging Competitive Cost Structure: Acreage is directly adjacent to Devon's existing Delaware Basin position, providing the ability to leverage existing facilities and infrastructure. Devon's top-tier drilling and completion cost performance across its Delaware Basin operations provides a significant underwriting advantage in developing these assets. Transaction value of $2.6 billion ($161,500 per net acre or $6.5 million per location) is expected to be funded with cash on hand while maintaining our strong credit profile. Devon remains fully committed to a disciplined cash-return framework, including its recently announced $8 billion share repurchase program. CEO COMMENTARY
“This BLM lease sale presented a rare and compelling opportunity to add high-quality, contiguous federal acreage at scale in the core of the Delaware Basin,” said Clay Gaspar, Devon’s President and Chief Executive Officer. “Each tract was evaluated on rock quality, midstream connectivity, strategic fit and per-share value accretion for our owners. The favorable federal lease terms, including the lower royalty burden, multi-pay potential and the ability to develop with longer laterals on multi-well pads, are immediately accretive to our top-tier inventory. This acquisition is consistent with our successful ground game track record and strengthens our leading Delaware Basin position.”
“The success we achieved in this auction is a testament to the alignment of our Board and the effectiveness of our team, even as we continue to accelerate through the integration of a major merger completed just two weeks ago. Our combined understanding of the basin following the Coterra merger only reinforced our conviction in the quality and depth of this inventory and our confidence in moving decisively to capture these accretive high-quality opportunities.”
ABOUT DEVON ENERGY
Devon Energy is a leading oil and gas producer in the U.S. with a premier multi-basin portfolio with assets in the Anadarko Basin, Eagle Ford, Marcellus Shale, Powder River Basin, Williston Basin, anchored by a world-class position in the Delaware Basin. Devon’s disciplined cash-return business model is designed to achieve strong returns, generate resilient free cash flow and return capital to shareholders, while focusing on safe and sustainable operations. For more information, please visit www.devonenergy.com.
Investor Contacts Daniel Guffey, 281-589-4875Chris Carr, 405-228-2496Hannah Stuckey, 281-589-4983Wade Browne, 405-228-7240 Media Contact Michelle Hindmarch, 405-552-7460 FORWARD-LOOKING STATEMENTS
This press release includes “forward-looking statements” within the meaning of the federal securities laws. Such statements include those concerning strategic plans, our expectations and objectives for future operations, as well as other future events or conditions, and are often identified by use of the words and phrases “expects,” “believes,” “will,” “would,” “could,” “continue,” “may,” “aims,” “likely to be,” “intends,” “forecasts,” “projections,” “estimates,” “plans,” “expectations,” “targets,” “opportunities,” “potential,” “anticipates,” “outlook” and other similar terminology. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Devon expects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control. Consequently, actual future results could differ materially and adversely from our expectations due to a number of factors, including, but not limited to: the volatility of oil, gas and NGL prices, including from changes in trade relations and policies, such as the imposition of new or increased tariffs or other trade protection measures by the U.S., China or other countries; uncertainties inherent in estimating oil, gas and NGL reserves; the extent to which we are successful in acquiring and discovering additional reserves; the uncertainties, costs and risks involved in our operations; risks related to our hedging activities; our limited control over third parties who operate some of our oil and gas properties and investments; midstream capacity constraints and potential interruptions in production, including from limits to the build out of midstream infrastructure; competition for assets, materials, people and capital, which can be exacerbated by supply chain disruptions, including as a result of tariffs or other changes in trade policy; regulatory restrictions, compliance costs and other risks relating to governmental regulation, including with respect to federal lands, environmental matters, water disposal and tax matters; climate change and risks related to regulatory, social and market efforts to address climate change; risks relating to our sustainability initiatives; claims, audits and other proceedings impacting our business, including with respect to historic and legacy operations; governmental interventions in energy markets; counterparty credit risks; risks relating to our indebtedness; cybersecurity risks; risks associated with artificial intelligence and other emerging technologies; the extent to which insurance covers any losses we may experience; risks related to shareholder activism; our ability to successfully complete mergers, acquisitions and divestitures; our ability to pay dividends and make share repurchases; the risk that we may not realize the anticipated benefits of the merger with Coterra or successfully integrate the two companies; and any of the other risks and uncertainties discussed in Devon’s 2025 Annual Report on Form 10-K (the “2025 Form 10-K”) or other filings with the SEC.
The forward-looking statements included in this press release speak only as of the date of this press release, represent management’s current reasonable expectations as of the date of this press release and are subject to the risks and uncertainties identified above as well as those described elsewhere in the 2025 Form 10-K and in other documents we file from time to time with the SEC. We cannot guarantee the accuracy of our forward-looking statements, and readers are urged to carefully review and consider the various disclosures made in the 2025 Form 10-K and in other documents we file from time to time with the SEC. All subsequent written and oral forward-looking statements attributable to Devon, or persons acting on its behalf, are expressly qualified in their entirety by the cautionary statements above. We do not undertake, and expressly disclaim, any duty to update or revise our forward-looking statements based on new information, future events or otherwise.
A pump jack operates at a well site leased by Devon Energy Production Company near Guthrie, Oklahoma September 15, 2015. REUTERS/Nick Oxford - TM3EB9F0WO901/File Photo Purchase Licensing Rights, opens new tab
SummaryCompaniesDevon acquires 16,300 undeveloped acres in Delaware Basin for $2.6 billionAnalysts raise concerns over high price per drilling location, calling it 'eye watering'Acreage offers favorable lease terms, sits near Devon's top assetsMay 21 (Reuters) - Shale producer Devon Energy (DVN.N), opens new tab on Thursday said it has acquired 16,300 net undeveloped acres in the core of the Delaware Basin in New Mexico for about $2.6 billion through a federal lease, strengthening its presence in the top U.S. shale play.
The move is a major step for Devon to deepen its position in the Delaware, part of the broader Permian Basin spanning West Texas and New Mexico, just weeks after closing its $58 billion merger with Coterra Energy. Shares of Devon closed down about 2.5% as some analysts expressed concern that the company had overpaid.
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The transaction adds about 400 net drilling locations normalized to two-mile laterals, Devon said. That implies a price of about $6.5 million per net drilling location, which two analysts said was surprisingly high.
"While we understand the need to continue bolstering inventory ... we believe investors will be surprised by the sticker price," Matt Portillo, an analyst with TPH & Co, said in a research note.
The price is "eye watering compared to historical M&A in the Permian," RBC Capital Markets analyst Scott Hanold said in a note. The leases are mainly in three sections of the basin that have no existing development, and one is near Devon's best-performing asset, Hanold said.
NEW AREA COMPLEMENTS EXISTING HOLDINGSThe acreage sits next to Devon's existing operations, letting the company leverage established infrastructure and drill longer laterals, it said.
"This area has some of the best wells, best economics in the entire basin. It's like virgin rock," said Chris Atherton, CEO of Houston-based Efficient Markets, a platform that facilitated the sale on behalf of the Bureau of Land Management.
He noted that the area was in New Mexico's Potash Area, where oil and gas drilling is generally heavily restricted in order to protect potash mining interests.
"It was a knife fight. It was hyper competitive. The biggest companies in the U.S. were competing over the absolute best rock," Atherton said, referring to the leasing process.
The U.S. Bureau of Land Management leases carry an 87.5% net revenue interest and 10-year terms across all depths, which Devon said offers more favorable terms and lower royalty burdens than typical state or private leases in the region.
Devon said it will fund the acquisition using cash on hand. Total cash at the end of the first quarter was $1.8 billion.
Reporting by Pranav Mathur in Bengaluru and Sheila Dang, Arathy Somasekhar and Georgina McCartney in Houston; Editing by Sahal Muhammed, Nathan Crooks , Bill Berkrot and Mark Porter
Our Standards: The Thomson Reuters Trust Principles., opens new tab
HOUSTON, May 22, 2026 (GLOBE NEWSWIRE) -- Devon Energy Corporation (NYSE: DVN) (“Devon”) and Coterra Energy Inc. (formerly NYSE: CTRA) (“Coterra”) today announced that, in connection with the completed merger of Coterra, with Coterra surviving as a direct, wholly owned subsidiary of Devon, Devon has commenced offers to Eligible Holders (as defined herein) to exchange (each, an “Exchange Offer” and collectively, the “Exchange Offers”) any and all outstanding notes issued by Coterra as set forth in the table below (the “Existing Coterra Notes”) for (1) new notes issued by Devon (the “New Devon Notes”) and (2) cash.
The following table sets forth the Exchange Consideration and Total Exchange Consideration for each series of Existing Coterra Notes:
Title of Series CUSIP Number ISIN Maturity Date Aggregate Principal Amount Outstanding Exchange Consideration(1) Total Exchange Consideration(2)3.90% Senior Notes due 2027 127097AE3 /
U12246AB7 / 127097AG8 US127097AE33 / USU12246AB74 / US127097AG80 May 15, 2027 $687,217,000 $970 principal amount of New Devon 3.90% Senior Notes due 2027 $1,000 principal amount of New Devon 3.90% Senior Notes due 2027 and $1.00 in cash3.90% Senior Notes due 2027(3) 171798AD3 US171798AD34 May 15, 2027 $62,718,000 $970 principal amount of New Devon 3.90% Senior Notes due 2027 $1,000 principal amount of New Devon 3.90% Senior Notes due 2027 and $1.00 in cash4.375% Senior Notes due 2029 127097AH6 / U12246AC5 / 127097AK9 US127097AH63 / USU12246AC57 / US127097AK92 March 15, 2029 $433,171,000 $970 principal amount of New Devon 4.375% Senior Notes due 2029 $1,000 principal amount of New Devon 4.375% Senior Notes due 2029 and $1.00 in cash4.375% Senior Notes due 2029(3) 171798AE1 US171798AE17 March 15, 2029 $66,812,000 $970 principal amount of New Devon 4.375% Senior Notes due 2029 $1,000 principal amount of New Devon 4.375% Senior Notes due 2029 and $1.00 in cash5.60% Senior Notes due 2034 127097AL7 US127097AL75 March 15, 2034 $500,000,000 $970 principal amount of New Devon 5.60% Senior Notes due 2034 $1,000 principal amount of New Devon 5.60% Senior Notes due 2034 and $1.00 in cash5.40% Senior Notes due 2035 127097AM5 US127097AM58 February 15, 2035 $750,000,000 $970 principal amount of New Devon 5.40% Senior Notes due 2035 $1,000 principal amount of New Devon 5.40% Senior Notes due 2035 and $1.00 in cash5.90% Senior Notes due 2055 127097AN3 US127097AN32 February 15, 2055 $750,000,000 $970 principal amount of New Devon 5.90% Senior Notes due 2055 $1,000 principal amount of New Devon 5.90% Senior Notes due 2055 and $1.00 in cash ______________________________
(1)For each $1,000 principal amount of Existing Coterra Notes validly tendered after the Early Tender Date (as defined herein) but at or before the Expiration Date (as defined herein), not validly withdrawn and accepted for exchange.(2)For each $1,000 principal amount of Existing Coterra Notes validly tendered at or before the Early Tender Date, not validly withdrawn and accepted for exchange.(3)Represents senior notes issued by Coterra Energy Operating Co., an indirect wholly owned subsidiary of Devon previously known as Cimarex Energy Co. (the “Existing Coterra OpCo Notes”). Concurrently with the Exchange Offers being made by Devon, Coterra is, upon Devon’s request, soliciting consents from Eligible Holders (each, a “Consent Solicitation” and, collectively, the “Consent Solicitations”) to adopt certain proposed amendments to each of the corresponding indentures governing the Existing Coterra Notes (other than the Existing Coterra OpCo Notes) to eliminate certain of the covenants, restrictive provisions and events of default from such indentures (with respect to the corresponding indenture for such Existing Coterra Notes, the “Proposed Amendments”). Eligible Holders of Existing Coterra Notes may deliver their consent to the Proposed Amendments to the corresponding indenture for the applicable class only by tendering Existing Coterra Notes of the applicable series in the Exchange Offers and Consent Solicitations. Eligible Holders may not deliver a consent in a Consent Solicitation without tendering Existing Coterra Notes in the applicable Exchange Offer and Eligible Holders may not tender Existing Coterra Notes without also having been deemed to deliver a consent.
Notwithstanding anything herein to the contrary, Coterra is not soliciting consents of Eligible Holders of the Existing Coterra OpCo Notes in connection with the Exchange Offers and Consent Solicitations. The Existing Coterra OpCo Notes are not subject to the Consent Solicitations.
The Exchange Offers and Consent Solicitations are being made pursuant to the terms and subject to the conditions set forth in the offering memorandum and consent solicitation statement dated as of May 22, 2026 (as it may be amended or supplemented, the “Offering Memorandum and Consent Solicitation Statement”). Devon, in its sole discretion, may terminate, withdraw, amend or extend any of the Exchange Offers, subject to the terms and conditions set forth in the Offering Memorandum and Consent Solicitation Statement. Any such termination, withdrawal, amendment or extension by Devon will automatically terminate, withdraw, amend or extend the corresponding Consent Solicitation, as applicable.
In addition, each Exchange Offer and Consent Solicitation is conditioned upon the completion of the other Exchange Offers and Consent Solicitations, although Devon may waive such condition at any time with respect to an Exchange Offer. Any waiver of a condition by Devon with respect to an Exchange Offer will automatically waive such condition with respect to the corresponding Consent Solicitation.
Eligible Holders who validly tender (and do not validly withdraw) their Existing Coterra Notes at or before to 5:00 p.m., New York City time, on June 5, 2026, unless extended (the “Early Tender Date”), will be eligible to receive, on the settlement date, the applicable Total Exchange Consideration as set forth in the table above for all such Existing Coterra Notes that are accepted. Eligible Holders who validly tender (and do not validly withdraw) their Existing Coterra Notes after the Early Tender Date but at or before 5:00 p.m., New York City time, on June 23, 2026, unless extended (the “Expiration Date”), will be eligible to receive, on the settlement date, the applicable Exchange Consideration as set forth in the table above for all such Existing Coterra Notes that are accepted. The settlement date will be promptly following the Expiration Date and is currently expected to occur within two business days after the Expiration Date.
The Exchange Offers and Consent Solicitations will only be made, and documents relating to the Exchange Offers and Consent Solicitations will only be distributed, to holders of Existing Coterra Notes who complete and return an eligibility letter confirming that they are persons (a) in the United States who are reasonably believed to be “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), or (b) that are outside the United States who are not “U.S. persons” as defined in Rule 902 under the Securities Act and who are eligible to participate in the Exchange Offer pursuant to the laws of the applicable jurisdiction, as set forth in the eligibility letter (“Eligible Holders”).
Eligible Holders of Existing Coterra Notes who are located in or a resident of Canada must also complete and return a Canadian supplemental eligibility letter to D.F. King & Co., Inc. (the “Information Agent” and the “Exchange Agent”) establishing its eligibility to participate in the Exchange Offers and providing supplemental information required for Canadian securities regulatory reporting purposes. Each holder of Existing Coterra Notes will, by participating in any Exchange Offer, be deemed to represent and warrant that it is not located in or a resident of any province or territory of Canada, and that it is not tendering any Existing Coterra Notes on behalf of a beneficial owner that is located in or a resident of Canada, unless either: (i) such holder has completed and returned a Canadian supplemental eligibility letter to the Information Agent, or (ii) such holder is an account manager outside Canada acting on behalf of a Canadian beneficial owner on a fully-discretionary basis, and no acts in furtherance of the exchange of such beneficial owner’s Existing Coterra Notes take place in Canada.
The complete terms and conditions of the Exchange Offers and Consent Solicitations are described in the Offering Memorandum and Consent Solicitation Statement, a copy of which may be obtained by Eligible Holders by contacting D.F. King & Co., Inc., the Exchange Agent and Information Agent in connection with the Exchange Offers and Consent Solicitations, by sending an email to [email protected] or by calling (877) 478-5045 (U.S. toll-free) or (212) 434-0035 (banks and brokers). The eligibility letter is available electronically at: www.dfking.com/dvn.
This press release does not constitute an offer to sell or purchase, or a solicitation of an offer to sell or purchase, or the solicitation of tenders or consents with respect to, any security. This press release should not be construed as an offer to sell or purchase, or a solicitation of an offer to sell or purchase, or the solicitation of tenders or consents with respect to, any Devon securities or other securities by Coterra. No offer, solicitation, purchase or sale will be made in any jurisdiction in which such an offer, solicitation, or sale would be unlawful. The Exchange Offers and Consent Solicitations are being made to Eligible Holders solely pursuant to the Offering Memorandum and Consent Solicitation Statement and only to such persons and in such jurisdictions as is permitted under applicable law.
The New Devon Notes have not been registered with the Securities and Exchange Commission (the “SEC”) under the Securities Act or any state or foreign securities laws. Therefore, the New Devon Notes may not be offered or sold in the United States or to any U.S. person absent registration, except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. In connection with the Exchange Offers, Devon will enter into a registration rights agreement, pursuant to which Devon will be obligated to use commercially reasonable efforts to file with the SEC and cause to become effective a registration statement with respect to an offer to exchange each series of New Devon Notes for new notes within 450 days of the settlement date. In addition, Devon has agreed to use commercially reasonable efforts to file a shelf registration statement to cover resales of the New Devon Notes under the Securities Act in certain circumstances.
ABOUT DEVON ENERGY
Devon Energy is a leading oil and gas producer in the U.S. with a premier multi-basin portfolio with assets in the Anadarko Basin, Eagle Ford, Marcellus Shale, Powder River Basin, Williston Basin, anchored by a world-class position in the Delaware Basin. Devon’s disciplined cash-return business model is designed to achieve strong returns, generate resilient free cash flow and return capital to shareholders, while focusing on safe and sustainable operations. For more information, please visit www.devonenergy.com.
Investor Contacts Daniel Guffey, 281-589-4875Chris Carr, 405-228-2496Hannah Stuckey, 281-589-4983Wade Browne, 405-228-7240 Media Contact Michelle Hindmarch, 405-552-7460 Stephen Flaherty, 281-589-4826 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release includes “forward-looking statements” within the meaning of federal securities laws. Such statements include those concerning statements about the timing of the Exchange Offers and Consent Solicitations, including the expected settlement date and the satisfaction or waiver of certain conditions to the Exchange Offers and the Consent Solicitations. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control. Consequently, actual future results could differ materially and adversely from our expectations due to a number of factors, including, but not limited to: risks relating to the terms and timing of the Exchange Offers and the Consent Solicitations, the number of Existing Coterra Notes tendered and not validly withdrawn, conditions in financial markets, investor response to the Exchange Offers and the Consent Solicitations, and any other risks and uncertainties discussed in the Offering Memorandum and Consent Solicitation Statement. The forward-looking statements included in this press release speak only as of the date of this press release, represent management’s current reasonable expectations as of the date of this press release and are subject to the risks and uncertainties identified above. We cannot guarantee the accuracy of our forward-looking statements, and readers are urged to carefully review and consider the various disclosures made in the Offering Memorandum and Consent Solicitation Statement. All subsequent written and oral forward-looking statements attributable to Devon, Coterra or persons acting on its behalf are expressly qualified in their entirety by the cautionary statements above. We do not undertake, and expressly disclaim, any duty to update or revise our forward-looking statements based on new information, future events or otherwise.
Devon Energy (DVN - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this oil and gas exploration company have returned -2.2%, compared to the Zacks S&P 500 composite's +5.5% change. During this period, the Zacks Oil and Gas - Exploration and Production - United States industry, which Devon Energy falls in, has gained 2.5%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Devon Energy is expected to post earnings of $1.34 per share for the current quarter, representing a year-over-year change of +59.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +6.4%.
The consensus earnings estimate of $5.05 for the current fiscal year indicates a year-over-year change of +28.8%. This estimate has changed +8.3% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $4.39 indicates a change of -13.1% from what Devon Energy is expected to report a year ago. Over the past month, the estimate has changed -0.2%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Devon Energy.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Devon Energy, the consensus sales estimate of $4.62 billion for the current quarter points to a year-over-year change of +7.9%. The $18.53 billion and $19.31 billion estimates for the current and next fiscal years indicate changes of +7.8% and +4.2%, respectively.
Last Reported Results and Surprise HistoryDevon Energy reported revenues of $3.81 billion in the last reported quarter, representing a year-over-year change of -14.5%. EPS of $1.04 for the same period compares with $1.21 a year ago.
Compared to the Zacks Consensus Estimate of $4.16 billion, the reported revenues represent a surprise of -8.48%. The EPS surprise was +4%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Devon Energy is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Devon Energy. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Devon Energy has received a roughly $8 billion offer from money manager Stone Ridge Asset Management for its Marcellus shale assets, four people familiar with the matter said.
On June 01, 2026, Devon Energy Corp DVN shares rose 4.1% to a current price of $46.31. This move contrasts with the stock's 52-week range of $30.24 to $52.71, illustrating significant volatility over the past year.
GF Value™ verdict: Current price is $46.31, which is 2.7% below the $47.58 GF Value™ estimate.GF Score™: 79/100, indicating the stock is above average in quality and potential.Most notable signal: Insiders sold $4.4M worth of shares in the last three months, suggesting caution. Is DVN Overvalued or Undervalued? According to the GF Value™, Devon Energy Corp is currently trading at $46.31, which is 2.7% below its estimated fair value of $47.58. This implies a modest margin of safety for potential investors. Given that the GF Valuation label indicates the stock is fairly valued, it suggests that while the stock is not significantly undervalued, there is still a slight opportunity for appreciation. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
Being slightly undervalued presents a potential opportunity for investors, but it is essential to remain cautious due to the recent insider selling activity, which might indicate that those closer to the company foresee potential challenges ahead. As such, while the stock presents a small margin for upside, investors should consider broader market conditions and company fundamentals before making decisions.
How Does DVN's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 12.9x 7.9x Forward P/E 8.8x - Currently, Devon Energy's P/E (TTM) of 12.9x is significantly above its 5-year median P/E of 7.9x, indicating that the stock is trading at a higher valuation compared to its historical averages. The forward P/E of 8.8x suggests a potentially lower valuation in the future, aligning more closely with historical norms. This P/E analysis supports the GF Value™ verdict that the stock is fairly valued, as the elevated P/E ratio implies caution regarding future earnings growth and market expectations.
What Does DVN's GF Score™ Tell Us? Metric Rating GF Score™ 79 Financial Strength 6/10 Profitability 7/10 Growth 7/10 Valuation 9/10 Momentum 3/10 The GF Score™ of 79 indicates that Devon Energy is positioned above average compared to its peers. The strongest aspects of the company are its Valuation rank of 9/10 and Profitability and Growth ranks of 7/10, reflecting a robust business model and effective management of resources. However, the Momentum rank of 3/10 suggests that the stock may not be experiencing favorable price trends, which could be a point of concern for potential investors.
What Are Insiders Doing with DVN Stock? In the last three months, insiders at Devon Energy sold $4.4 million worth of shares, with no reported buying activities. This trend of selling may indicate a lack of confidence among insiders regarding the company’s near-term prospects. Typically, when insiders are selling, it may suggest that they believe the stock is fully valued or that they anticipate challenges ahead. Investors may want to monitor insider activities closely as part of their overall assessment of the stock.
What This Means for Investors Overall, Devon Energy Corp appears to be fairly valued based on the current GF Value™ assessment, with a slight margin of safety present. However, the recent insider selling and lower momentum rank warrant caution. Investors should take these factors into account when considering their position in Devon Energy.
For the complete analysis, visit the Devon Energy Corp DVN stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is DVN's GF Score™?
DVN's GF Score™ is 79/100, indicating it ranks above average in quality and potential for long-term returns.
Is DVN overvalued or undervalued?
DVN is considered fairly valued, with its current price of $46.31 being 2.7% below the GF Value™ estimate of $47.58.
What is DVN's P/E ratio?
DVN's current P/E (TTM) is 12.9x, which is significantly above its 5-year median P/E of 7.9x, indicating a higher valuation compared to its historical averages.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Devon Energy (DVN - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this oil and gas exploration company have returned -9.7% over the past month versus the Zacks S&P 500 composite's +6.3% change. The Zacks Oil and Gas - Exploration and Production - United States industry, to which Devon Energy belongs, has lost 6.6% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Devon Energy is expected to post earnings of $1.25 per share for the current quarter, representing a year-over-year change of +48.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -14.8%.
The consensus earnings estimate of $4.44 for the current fiscal year indicates a year-over-year change of +13.3%. This estimate has changed -26.4% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $4.34 indicates a change of -2.1% from what Devon Energy is expected to report a year ago. Over the past month, the estimate has changed -6.5%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Devon Energy is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Devon Energy, the consensus sales estimate for the current quarter of $6.24 billion indicates a year-over-year change of +45.6%. For the current and next fiscal years, $23.95 billion and $25.78 billion estimates indicate +39.3% and +7.6% changes, respectively.
Last Reported Results and Surprise HistoryDevon Energy reported revenues of $3.81 billion in the last reported quarter, representing a year-over-year change of -14.5%. EPS of $1.04 for the same period compares with $1.21 a year ago.
Compared to the Zacks Consensus Estimate of $4.16 billion, the reported revenues represent a surprise of -8.48%. The EPS surprise was +4%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Devon Energy is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Devon Energy. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
A month has gone by since the last earnings report for Devon Energy (DVN - Free Report) . Shares have lost about 0.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Devon Energy due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Devon Energy's Q1 Earnings Beat Estimates, Coterra Merger on Course
Devon Energy Corp. reported first-quarter 2026 earnings per share (EPS) of $1.04, surpassing the Zacks Consensus Estimate of $1 by 4%. The metric was down 14% year over year.
GAAP EPS in the reported quarter was 19 cents compared with 77 cents in the year-ago quarter. The difference between GAAP and operating earnings in the first quarter was due to an impact of 81 cents from fair value changes in financial instruments, 1 cent for asset and exploration impairments, and 3 cents from restructuring and transaction costs.
DVN’s Q1 Revenue DetailsTotal revenues for the quarter were $3.80 billion, which lagged the Zacks Consensus Estimate of $4.16 billion by 8.5%. The top line decreased 14.5% from the year-ago quarter’s figure
Production at DVNNet production in the first quarter totaled 833,000 barrels of oil equivalent per day (Boe/d), up 2.2% year over year. The production volume was within the guided range of 823,000-843,000 Boe/d. Improvement in production volumes from the Delaware Basin boosted the metric.
Natural gas liquids production increased 7.4% year over year to 218,000 barrels per day (Bbl/d). Oil production amounted to 387,000 Bbl/d, down marginally by 0.2% on a year-over-year basis, due to a weaker contribution from the Delaware Basin.
DVN’s Realized PricesRealized oil prices (including cash settlements) for the quarter were $67.94 per barrel, down 1.7% from $69.15 in the year-ago period. Realized prices for natural gas liquids were $17.80 per barrel, down 18.8% from $21.93 in the prior-year quarter.
Realized gas prices were $1.68 per thousand cubic feet, indicating a decline of 32.3% from $2.48 a year ago.
Total oil equivalent realized prices, including cash settlements, were $38.94 per Boe, down nearly 8.3% year over year.
Highlights of DVN’s Q1 ReleaseTotal production expenses in the first quarter were $894 million, down 19.7% year over year.
Devon Energy bought back $69 million worth of shares in the first quarter. Looking ahead, management has outlined plans to introduce a new share repurchase program exceeding $5 billion and to raise the quarterly fixed dividend, subject to board approval following the completion of the Coterra merger.
Devon Energy’s Merger UpdateOn Feb. 2, 2026, Devon Energy agreed to merge with Coterra Energy in an all-stock deal, creating one of the world’s largest shale operators with a strong foothold in the core of the Delaware Basin. The combined company, which will retain the Devon Energy name, is expected to drive significant shareholder value through greater scale, improved margins, higher free cash flow and about $1 billion in annual pre-tax synergies by the end of 2027.
The merger received shareholder approval on May 4 and is expected to close around May 7, 2026. After completion, Devon Energy’s shareholders will hold roughly 54% of the combined entity, while Coterra/’s shareholders will own about 46% on a fully diluted basis.
Financial Highlights of DVNAs of March 31, 2026, the company had cash and cash equivalents (including restricted cash) of $1.81 billion compared with $1.43 billion as of Dec. 31, 2025.
Long-term debt amounted to $7.387 billion as of March 31, 2026, down from $7.391 billion as of Dec. 31, 2025.
Devon Energy’s net cash from operating activities was $1.65 billion in first-quarter 2026 compared with $1.94 billion in first-quarter 2025. Capital expenditures in first-quarter totaled $839 million, down $934 million invested in first-quarter 2025.
Devon Energy’s GuidanceSecond-quarter production is expected in the range of 851,000-868,000 Boe/d and capital spending is estimated in the band of $875-$925 million.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -12.84% due to these changes.
VGM ScoresCurrently, Devon Energy has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Devon Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
HOUSTON, June 08, 2026 (GLOBE NEWSWIRE) -- Devon Energy Corporation (NYSE: DVN) (“Devon”) today announced that, in connection with the previously announced offers to Eligible Holders (as defined herein) to exchange (each, an “Exchange Offer” and collectively, the “Exchange Offers”) any and all outstanding notes issued by Coterra Energy Inc., a direct, wholly owned subsidiary of Devon (“Coterra”), as set forth in the table below (the “Existing Coterra Notes”) for (1) new notes issued by Devon (the “New Devon Notes”) and (2) cash, and solicitations of consents by Coterra from Eligible Holders (each, a “Consent Solicitation” and, collectively, the “Consent Solicitations”) to adopt certain proposed amendments to each of the corresponding indentures governing the Existing Coterra Notes (other than the Existing Coterra OpCo Notes (as defined herein)) (with respect to the corresponding indenture for such Existing Coterra Notes, the “Proposed Amendments”), as of 5:00 p.m., New York City time, on June 5, 2026 (the “Early Tender Date”), the following principal amounts of each series of Existing Coterra Notes have been validly tendered and not validly withdrawn (and consents thereby have been validly given and not validly revoked):
Notes Tendered at Early Tender DateTitle of Series Aggregate Principal Amount Outstanding Principal Amount Percentage3.90% Senior Notes due 2027 $687,217,000 $585,354,000 85.18%3.90% Senior Notes due 2027(1) $62,718,000 $41,244,000 65.76%4.375% Senior Notes due 2029 $433,171,000 $385,958,000 89.10%4.375% Senior Notes due 2029(1) $66,812,000 $61,594,000 92.19%5.60% Senior Notes due 2034 $500,000,000 $465,053,000 93.01%5.40% Senior Notes due 2035 $750,000,000 $669,133,000 89.22%5.90% Senior Notes due 2055 $750,000,000 $733,342,000 97.78% ________________________________
(1) Represents senior notes issued by Coterra Energy Operating Co., an indirect wholly owned subsidiary of Devon previously known as Cimarex Energy Co. (the “Existing Coterra OpCo Notes”).
Coterra has received the requisite number of consents to adopt the Proposed Amendments with respect to each of the five outstanding series of Existing Coterra Notes that are subject to the Consent Solicitations. Notwithstanding anything herein to the contrary, the Existing Coterra OpCo Notes are not subject to the Consent Solicitations. Accordingly, Coterra and the trustee for each such outstanding series of Existing Coterra Notes have executed and delivered a supplemental indenture amending the indentures governing the Existing Coterra Notes effecting the Proposed Amendments, which such supplemental indenture will become operative on the settlement date, which is expected to occur within two business days after the Expiration Date (as defined herein).
Tendered Existing Coterra Notes may no longer be withdrawn.
Devon has also announced that the previous deadline for Eligible Holders to tender their Existing Coterra Notes and be eligible to receive, for each $1,000 principal amount of Existing Coterra Notes, the applicable consideration set out in the column titled “Total Exchange Consideration” in the table below has been extended to the Expiration Date. As a result, the consideration to be paid for Existing Coterra Notes validly tendered (i) at or prior to the Early Tender Date and (ii) following the Early Tender Date, but at or prior to the Expiration Date, will be the same. Payment is expected to be made on the settlement date.
Title of Series CUSIP Number ISIN Aggregate Principal Amount Outstanding Total Exchange Consideration(1)3.90% Senior Notes due 2027 127097AE3 /
U12246AB7 / 127097AG8 US127097AE33 / USU12246AB74 / US127097AG80 $687,217,000 $1,000 principal amount of New Devon 3.90% Senior Notes due 2027 and $1.00 in cash3.90% Senior Notes due 2027(2) 171798AD3 US171798AD34 $62,718,000 $1,000 principal amount of New Devon 3.90% Senior Notes due 2027 and $1.00 in cash4.375% Senior Notes due 2029 127097AH6 / U12246AC5 / 127097AK9 US127097AH63 / USU12246AC57 / US127097AK92 $433,171,000 $1,000 principal amount of New Devon 4.375% Senior Notes due 2029 and $1.00 in cash4.375% Senior Notes due 2029(2) 171798AE1 US171798AE17 $66,812,000 $1,000 principal amount of New Devon 4.375% Senior Notes due 2029 and $1.00 in cash5.60% Senior Notes due 2034 127097AL7 US127097AL75 $500,000,000 $1,000 principal amount of New Devon 5.60% Senior Notes due 2034 and $1.00 in cash5.40% Senior Notes due 2035 127097AM5 US127097AM58 $750,000,000 $1,000 principal amount of New Devon 5.40% Senior Notes due 2035 and $1.00 in cash5.90% Senior Notes due 2055 127097AN3 US127097AN32 $750,000,000 $1,000 principal amount of New Devon 5.90% Senior Notes due 2055 and $1.00 in cash ________________________________
(1) For each $1,000 principal amount of Existing Coterra Notes validly tendered at or before the Expiration Date, not validly withdrawn and accepted for exchange.
(2) Represents the Existing Coterra OpCo Notes.
The Exchange Offers and Consent Solicitations are being made pursuant to the terms and subject to the conditions set forth in the offering memorandum and consent solicitation statement dated as of May 22, 2026 (as amended by this press release, the “Offering Memorandum and Consent Solicitation Statement”). Each Exchange Offer and Consent Solicitation is conditioned upon the completion of the other Exchange Offers and Consent Solicitations, although Devon may waive such condition at any time with respect to an Exchange Offer. Any waiver of a condition by Devon with respect to an Exchange Offer will automatically waive such condition with respect to the corresponding Consent Solicitation. Devon, in its sole discretion, may terminate, withdraw, amend or extend any of the Exchange Offers, subject to the terms and conditions set forth in the Offering Memorandum and Consent Solicitation Statement. Any such termination, withdrawal, amendment or extension by Devon will automatically terminate, withdraw, amend or extend the corresponding Consent Solicitation, as applicable.
The Exchange Offers and Consent Solicitations will expire at 5:00 p.m., New York City time, on June 23, 2026, unless extended (the “Expiration Date”).
The Exchange Offers and Consent Solicitations are only being made, and documents relating to the Exchange Offers and Consent Solicitations are only being distributed, to holders of Existing Coterra Notes who complete and return an eligibility letter confirming that they are persons (a) in the United States who are reasonably believed to be “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), or (b) that are outside the United States who are not “U.S. persons” as defined in Rule 902 under the Securities Act and who are eligible to participate in the Exchange Offer pursuant to the laws of the applicable jurisdiction, as set forth in the eligibility letter (“Eligible Holders”).
Eligible Holders of Existing Coterra Notes who are located in or a resident of Canada must also complete and return a Canadian supplemental eligibility letter to D.F. King & Co., Inc. (the “Information Agent” and the “Exchange Agent”) establishing its eligibility to participate in the Exchange Offers and providing supplemental information required for Canadian securities regulatory reporting purposes. Each holder of Existing Coterra Notes will, by participating in any Exchange Offer, be deemed to represent and warrant that it is not located in or a resident of any province or territory of Canada, and that it is not tendering any Existing Coterra Notes on behalf of a beneficial owner that is located in or a resident of Canada, unless either: (i) such holder has completed and returned a Canadian supplemental eligibility letter to the Information Agent, or (ii) such holder is an account manager outside Canada acting on behalf of a Canadian beneficial owner on a fully-discretionary basis, and no acts in furtherance of the exchange of such beneficial owner’s Existing Coterra Notes take place in Canada.
The complete terms and conditions of the Exchange Offers and Consent Solicitations are described in the Offering Memorandum and Consent Solicitation Statement, a copy of which may be obtained by Eligible Holders by contacting D.F. King & Co., Inc., the Exchange Agent and Information Agent in connection with the Exchange Offers and Consent Solicitations, by sending an email to [email protected] or by calling (877) 478-5045 (U.S. toll-free) or (212) 434-0035 (banks and brokers). The eligibility letter is available electronically at: www.dfking.com/dvn.
This press release does not constitute an offer to sell or purchase, or a solicitation of an offer to sell or purchase, or the solicitation of tenders or consents with respect to, any security. This press release should not be construed as an offer to sell or purchase, or a solicitation of an offer to sell or purchase, or the solicitation of tenders or consents with respect to, any Devon securities or other securities by Coterra. No offer, solicitation, purchase or sale will be made in any jurisdiction in which such an offer, solicitation, or sale would be unlawful. The Exchange Offers and Consent Solicitations are being made to Eligible Holders solely pursuant to the Offering Memorandum and Consent Solicitation Statement and only to such persons and in such jurisdictions as is permitted under applicable law.
The New Devon Notes have not been registered with the Securities and Exchange Commission (the “SEC”) under the Securities Act or any state or foreign securities laws. Therefore, the New Devon Notes may not be offered or sold in the United States or to any U.S. person absent registration, except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. In connection with the Exchange Offers, Devon expects to enter into a registration rights agreement, pursuant to which Devon will be obligated to use commercially reasonable efforts to file with the SEC and cause to become effective a registration statement with respect to an offer to exchange each series of New Devon Notes for new notes within 450 days of the settlement date. In addition, Devon has agreed to use commercially reasonable efforts to file a shelf registration statement to cover resales of the New Devon Notes under the Securities Act in certain circumstances.
ABOUT DEVON ENERGY
Devon Energy is a leading oil and gas producer in the U.S. with a premier multi-basin portfolio with assets in the Anadarko Basin, Eagle Ford, Marcellus Shale, Powder River Basin, Williston Basin, anchored by a world-class position in the Delaware Basin. Devon’s disciplined cash-return business model is designed to achieve strong returns, generate resilient free cash flow and return capital to shareholders, while focusing on safe and sustainable operations. For more information, please visit www.devonenergy.com.
Investor Contacts
Daniel Guffey, 281-589-4875
Hannah Stuckey, 281-589-4983
Chris Carr, 405-228-2496
Wade Browne, 405-228-7240 Media Contact
Michelle Hindmarch, 405-552-7460
Stephen Flaherty, 281-589-4826 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release includes “forward-looking statements” within the meaning of federal securities laws. Such statements include those concerning statements about the timing of the Exchange Offers and Consent Solicitations, including the expected settlement date and the satisfaction or waiver of certain conditions to the Exchange Offers and the Consent Solicitations. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control. Consequently, actual future results could differ materially and adversely from our expectations due to a number of factors, including, but not limited to: risks relating to the terms and timing of the Exchange Offers and the Consent Solicitations, the number of Existing Coterra Notes tendered and not validly withdrawn, conditions in financial markets, investor response to the Exchange Offers and the Consent Solicitations, and any other risks and uncertainties discussed in the Offering Memorandum and Consent Solicitation Statement. The forward-looking statements included in this press release speak only as of the date of this press release, represent management’s current reasonable expectations as of the date of this press release and are subject to the risks and uncertainties identified above. We cannot guarantee the accuracy of our forward-looking statements, and readers are urged to carefully review and consider the various disclosures made in the Offering Memorandum and Consent Solicitation Statement. All subsequent written and oral forward-looking statements attributable to Devon, Coterra or persons acting on its behalf are expressly qualified in their entirety by the cautionary statements above. We do not undertake, and expressly disclaim, any duty to update or revise our forward-looking statements based on new information, future events or otherwise.
Separation vessel at the Devon Enrgy SAGD plant under construction south of Fort MacMurray in north Alberta. (Photo by Adrian Greeman/Construction Photography/Avalon/Getty Images)
Getty Images
Just a few short weeks after completing a $58B merger with Coterra Energy earlier in May, Devon Energy received an offer of $8B for its shale assets in the Marcellus region of Pennsylvania. The offer, from money manager Stone Ridge Asset Management, covers about 190,000 net acres and could become the largest asset-backed securitization funding ever attempted in the United States oil and gas sector. (Source).
As noted in Business News Today, the Coterra merger gave Devon both assets and exposure across the Marcellus, Anadarko, Eagle Ford and Williston Basins, with the attendant risks and opportunities. Devon must now show that it can handle such varied assets, or else divest itself of those not related to its core business.
The Marcellus assets are expected to account for approximately twenty percent of Devon’s 1.6M barrels of oil equivalent (boe)/day production forecast in 2026. (Source). Part of the importance of the Stone Ridge offer is that it provides a clear price point for Devon’s Marcellus assets, and not a theoretical framework for discussion of value. While Devon DEO Clay Gaspar has indicated that Devon might divert some non-core positions, the company recently has been in an expansion mode. On May 20 it was the biggest buyer of oil and gas drilling rights on federal land in New Mexico and Texas at an auction held by the federal government. In fact, Devon was responsible for $2.5B out of the total $4B sale, a record for such auctions.
Regardless of whether Devon accepts the Stone Ridge offer, the fact of the offer itself shows the value of such wells in Pennsylvania. As of February 2026, the Keystone State has 281,000 wells which produce an average of 1,073,895 million cubic feet (mcf) per natural gas well. (Source). That makes Pennsylvania the second largest producer of natural gas in the United States, accounting for approximately 19% of the national total. (Source). This is an extraordinary statistic given that approximately twenty years ago Pennsylvania had almost no natural gas industry at all.
Pennsylvania’s natural gas reserves doubled from 2013 to 2023 and now reaches an estimate of 101 trillion cubic feel (Tcf). (Source). As the state uses only about one-quarter of the natural gas that it produces, Pennsylvania truly becomes the “keystone” for surrounding states in providing natural gas, especially to states north and east like New York, which has plentiful natural gas reserves but chooses not to develop them, or New Jersey which has limited reserves.
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In addition, the Marcellus Basin assets have demonstrated low decline rates. As such there is talk that these assets might lend themselves to securitization of individual wells, which could be appealing to potential investors looking for an interest in energy assets. This is made possible by the lower depletion rates, making these assets attractive to investors over the longer term. (Source).
Likely then, Stone Ridge would partner with an operator to extract the natural gas while using its financing skill to develop, produce and sell an investment vehicle. If successful, this could help revolutionize the energy industry – at least in the Marcellus – and drive up even further the value of Marcellus assets.
However the Stone Ridge offer for Devon’s Marcellus assets shakes out, it could be that the big winner is Pennsylvania. Unlike New York, Pennsylvania welcomed the energy industry, and that industry may continue to make Pennsylvania a strong place to do business into the middle of the twenty-first century.
HOUSTON, June 09, 2026 (GLOBE NEWSWIRE) -- Devon Energy Corp. (NYSE: DVN) today provided an updated outlook for the combined company following the recent completion of its transformative merger with Coterra Energy. Supplemental guidance tables for the combined entity are included below and a presentation is available on the company's website at www.devonenergy.com .
A pump jack operates at a well site leased by Devon Energy Production Company near Guthrie, Oklahoma September 15, 2015. REUTERS/Nick Oxford Purchase Licensing Rights, opens new tab
SummaryCompaniesDevon plans to return up to 70% free cash flow to shareholdersExpects to repay $1.25 billion debtStrategic, financial portfolio review underway - CEO Clay GasparJune 9 (Reuters) - Devon Energy (DVN.N), opens new tab on Tuesday forecast its 2026 production to average 1.38 million barrels of oil equivalent per day, after the completion of its merger with Coterra Energy.
The $58 billion merger, completed in May, created one of the largest independent oil and gas producers in the U.S. Its presence in half a dozen regions is led by the Delaware portion of the Permian Basin in Texas and New Mexico.
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The company also forecast full-year capital spending of about $4.9 billion, with more than 60% of it allocated to the Permian Basin, as it focuses activity around its core assets.
Devon said it would provide timely updates as it looks to concentrate the portfolio around its Permian position to improve shareholder returns.
"Optimizing our portfolio remains a top priority, and a complete review of our strategic and financial criteria is well underway," CEO Clay Gaspar said.
The shale producer said it aims to return up to 70% of free cash flow to shareholders through a combination of a quarterly fixed dividend of $0.32 per share and its previously announced $8 billion share repurchase program.
Devon said it expected to repay $1.25 billion of debt this year.
It added that it is accelerating merger-related synergies, targeting to capture $600 million in 2027 and $1 billion in annual pre-tax synergies on a run-rate basis by the end of that year.
Last month, Devon acquired 16,300 net undeveloped acres in the core of the Delaware Basin in New Mexico for about $2.6 billion.
Reporting by Sumit Saha in Bengaluru; Editing by Joyjeet Das
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Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.
Considering buying DVN stock? Here’s what analysts think:
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Devon Energy NYSE:DVN shares climbed more than 6% on Wednesday after analysts responded positively to the company's latest operational update and outlook following its acquisition of Coterra Energy earlier this year.
The rally came after Evercore ISI upgraded Devon to Outperform, citing what it described as a "better-than-expected mid-month update."
Investors also assessed new guidance related to the company's integration of Coterra, which Devon acquired in early May in a deal valued at approximately $58 billion.
The update provided additional details on production expectations, capital spending plans, synergy realization, and shareholder return commitments as the company continues integrating the acquired assets.
Analysts focus on post-acquisition outlookDevon management updated investors on its outlook following the Coterra acquisition, offering pro forma guidance and commentary on expected synergies and portfolio optimization efforts.
BMO Capital reiterated its Outperform rating on Devon and maintained a $65 price target.
The firm said the update included expected mid-June guidance, progress on synergy capture, and additional information regarding portfolio reviews.
According to BMO, the update appeared largely neutral overall but suggested stronger capital efficiency than previously expected.
The firm noted that these benefits were offset by higher operating expenses, increased cash taxes, and weaker pricing at the Waha natural gas hub.
The company also reaffirmed its commitment to returning capital to shareholders.
Devon said it plans to return up to 70% of free cash flow through its previously announced $8 billion share repurchase authorization and its base dividend program.
BMO added that it continues to see significant value in Devon shares and believes improved execution and portfolio optimization could help narrow the valuation gap relative to industry peers.
The company's shareholder return framework remains an important component of the investment thesis for analysts.
Under the current plan, Devon intends to continue directing a substantial portion of free cash flow toward buybacks and dividends while also managing debt levels following the Coterra transaction.
Analysts noted that the company has maintained its commitment to capital discipline despite the scale of the acquisition.
The latest guidance also highlighted ongoing efforts to capture synergies from the merger.
Management indicated that integration initiatives remain on track, providing investors with additional confidence in the transaction's long-term potential.
The company is also reviewing its asset portfolio as part of its broader integration strategy, which could result in further optimization efforts over time.
William Blair analyst Neal Dingmann maintained a Buy rating on Devon, pointing to several factors supporting the company's long-term outlook.
According to Dingmann, Devon's pro forma production outlook and capital spending plans for 2026 appear slightly stronger than current market expectations.
He also noted that the company's shareholder return and debt reduction plans remain consistent with investor expectations.
Dingmann highlighted Devon's increasing focus on the Permian Basin as another positive development.
The company plans to direct significant investment toward the region, a move that could potentially be accompanied by the monetization of non-core assets.
He believes that operating efficiencies, visible synergy capture ahead of the company's 2027 targets, and a large inventory of Permian drilling opportunities support the stock's long-term value proposition.
Shares of Devon Energy (DVN +1.48%) rose on Wednesday after the hydrocarbon exploration specialist provided investors with an updated operational forecast for 2026.
Image source: Getty Images.
Stronger together Devon completed its $58 billion merger with fellow oil and gas producer Coterra Energy in May. The combination created a more financially sound shale operator with a leading presence in the oil-rich Delaware Basin.
The combined company is on track to produce an average of 1.38 million barrels of oil equivalent per day in 2026. To do so, it plans to spend roughly $4.9 billion this year to bring 460 to 480 net wells online.
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Lucrative cash returns for shareholders Devon's operating strategy prioritizes cost-efficiency and free cash flow generation. Management is targeting $1 billion in ongoing annual pre-tax cost savings by the end of 2027. Devon intends to use the cash its wells produce to strengthen its balance sheet by paying off $1.25 billion of debt.
Devon also plans to pass about 70% of its excess cash on to shareowners via a quarterly fixed dividend of $0.32 per share -- representing a forward annual yield of 2.7% based on its current stock price of $46.60 -- and $8 billion in stock buybacks.
"Today's guidance underscores the strength of our newly combined platform as one of the largest and most efficient E&P [exploration and production] companies," CEO Clay Gaspar said.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The Chicago-based company’s stock price gained around 12% in the last month, and Snipe expects the momentum to continue.
On May 29, AbbVie announced the European Commission’s authorization of an expanded label for Venetoclax to include additional combinations for previously untreated chronic lymphocytic leukemia.
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Stephen Weiss, chief investment officer and managing partner of Short Hills Capital Partners, picked U.S. 10 Year Treasury.
SoFi ‘s Liz Young Thomas, meanwhile, recommended the U.S. 2 Year Treasury.
AbbVie, on May 29, announced European Commission authorization of expanded label for Venetoclax to include additional combinations in previously untreated chronic lymphocytic leukemia.
Joseph M. Terranova, senior managing director for Virtus Investment Partners, named Devon Energy Corp (NYSE:DVN) as his final trade.
Devon Energy shares surged on Wednesday after the company issued fresh guidance for 2026 following the completion of its merger with Coterra Energy. The combined business expects to produce about 1.38 million barrels of oil equivalent per day in 2026, with oil output projected at 500,000 barrels per day.
Evercore ISI Group analyst Stephen Richardson upgraded Devon Energy from In-Line to Outperform on Wednesday and set a $54 price target.
Price Action AbbVie shares fell 0.2% to close at $224.95 on Wednesday. Devon Energy shares jumped 5.8% to settle at $46.60 during the session. Photo via Shutterstock
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Devon Energy (DVN - Free Report) closed the most recent trading day at $44.61, moving -4.27% from the previous trading session. This change lagged the S&P 500's daily gain of 1.75%. Meanwhile, the Dow experienced a rise of 1.86%, and the technology-dominated Nasdaq saw an increase of 2.54%.
Heading into today, shares of the oil and gas exploration company had lost 0.64% over the past month, lagging the Oils-Energy sector's loss of 0.13% and outpacing the S&P 500's loss of 1.63%.
Investors will be eagerly watching for the performance of Devon Energy in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.19, showcasing a 41.67% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $6.19 billion, indicating a 44.44% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.44 per share and revenue of $25 billion, indicating changes of +13.27% and +45.44%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Devon Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 21.92% downward. Devon Energy is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Devon Energy is holding a Forward P/E ratio of 10.5. Its industry sports an average Forward P/E of 9.87, so one might conclude that Devon Energy is trading at a premium comparatively.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 109, putting it in the top 45% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
