Skip to Content
Morningstar

Devon Energy Corp DVN

Morningstar Rating
Unlock
Stock XNYS Rating as of
$50.56 −0.42 (0.82%)
View Full Chart
As of Delayed Price Pre-Open: $51.05 +0.48
Unlock our analysis with Morningstar Investor
Start Free Trial

Company Report

View Archive

Devon: Multiyear, Attractive Inventory and Low-Cost Operations Give Us Continued Confidence

Joshua Aguilar,

After taking a fresh look, we raise our Devon fair value estimate by 2% to $56 per share. Our fair value estimate corresponds to a premium 2024 enterprise value/EBITDA multiple of just over 5 times, even as the stock affords an insufficient margin of safety. We attribute our revised fair value estimate to slightly higher return and growth assumptions in stage II. That said, our 2024 production forecast of 676 thousand barrels of oil equivalent per day remains unchanged. Our expected production drives our anticipated 2024 EBITDA of about $8.1 billion, or 2024 free cash flow of $3.4 billion.

Read Full Report

Price vs Fair Value

View History
DVN is trading at a 10% discount.
Price
$50.56
Fair Value
$76.00
Uncertainty
Medium
1-Star Price
$12.30
5-Star Price
$79.60
Economic Moat
Xqkrmd
Capital Allocation
Ssrskzfjj

Bulls Say, Bears Say

Bulls

Devon enjoys ideally located acreage in core portions of the basins it operates in. Attractive acreage translates to above-average well performance and peer-leading supply costs.

Bears

After incorporating sunk costs from leaseholds, acquisitions, exploration, and infrastructure, Devon's capital base inflates to a level that could threaten excess returns.

Show More
Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if DVN is a good fit for your portfolio.
Get 7 Days Free

News

View All

Trading Information

Previous Close Price
$50.98
Day Range
$50.30–51.07
52-Week Range
$40.47–55.09
Bid/Ask
$50.17 / $51.27
Market Cap
$31.95 Bil
Volume/Avg
1 / 7.6 Mil

Key Statistics

Price/Earnings (Normalized)
9.36
Price/Sales
2.15
Dividend Yield (Trailing)
4.79%
Dividend Yield (Forward)
4.79%
Total Yield
6.82%

Company Profile

Devon Energy is an oil and gas producer with acreage in several top US shale plays. While roughly two thirds of its production comes from the Permian Basin, it also holds a meaningful presence in the Anadarko, Eagle Ford, and Bakken basins. At the end of 2023, Devon reported net proved reserves of 1.8 billion barrels of oil equivalent. Net production averaged roughly 658,000 barrels of oil equivalent per day in 2023 at a ratio of 73% oil and natural gas liquids and 27% natural gas.
Sector
Energy
Industry
Oil & Gas E&P
Stock Style Box
Mid Value
Total Number of Employees
1,900
Website
https://www.devonenergy.com

Competitors

Valuation

View More
Metric
DVN
EOG
FANG
Price/Earnings (Normalized)
 9.3610.9310.97
Price/Book Value
 2.632.612.14
Price/Sales
 2.153.234.22
Price/Cash Flow
 4.906.586.38
Price/Earnings
DVN
EOG
FANG

Financial Strength

Metric
DVN
EOG
FANG
Quick Ratio
 0.831.960.87
Current Ratio
 1.072.440.92
Interest Coverage
 13.3864.8425.71
Quick Ratio
DVN
EOG
FANG

Profitability

Metric
DVN
EOG
FANG
Return on Assets (Normalized)
 14.30%16.00%11.70%
Return on Equity (Normalized)
 29.77%25.23%20.54%
Return on Invested Capital (Normalized)
 20.25%21.58%14.66%
Return on Assets
DVN
EOG
FANG
See how this stock stacks up to its competitors with Morningstar Investor
Start Free Trial

Oil & Gas E&P Industry Comparables

Screen in Investor
Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
COP
ConocoPhillipsCdpdthkwPxpcwm$143.9 Bil
EOG
EOG Resources IncPqpgfzfmgDmqgjk$74.9 Bil
OXY
Occidental Petroleum CorpQynfvdyyKvqjh$56.5 Bil
HES
Hess CorpCyxvfvpsTmlvjr$48.6 Bil
FANG
Diamondback Energy IncQfmgcnnjwhHcbdm$36.2 Bil
MRO
Marathon Oil CorpHvlxckddyKdj$15.2 Bil
APA
APA CorpTzqqpbfLwmp$11.3 Bil
AR
Antero Resources CorpLsjxsfxkDxkzx$10.7 Bil
RRC
Range Resources CorpYnsfxcjdTqws$9.0 Bil

Sponsor Center