Each year, we reevaluate well productivity for our entire US shale coverage. For each covered company, we scrutinize third-party data on both a basin and region basis. As in prior years, our process prompted mostly modest valuation changes but left our moat, capital allocation, and uncertainty ratings unchanged.
Devon's acreage is ideally located in the core portions of the basins in which it operates. That translates to above-average well performance and peer-leading supply costs.
After incorporating costs sunk on leasehold, acquisitions, exploration, and infrastructure, Devon's capital base inflates to a level that puts excess returns on capital out of reach.
|
Metric
|
DVN
|
FANG
|
PXD
|
|---|---|---|---|
Price/Earnings (Normalized) | 9.15 | 10.75 | 12.43 |
Price/Book Value | 2.75 | 2.15 | 2.69 |
Price/Sales | 2.20 | 4.31 | 3.34 |
Price/Cash Flow | 5.01 | 6.39 | 7.51 |
|
Metric
|
DVN
|
FANG
|
PXD
|
|---|---|---|---|
Quick Ratio | 0.83 | 0.68 | 0.66 |
Current Ratio | 1.07 | 0.77 | 0.88 |
Interest Coverage | 13.38 | 25.26 | 44.95 |
|
Metric
|
DVN
|
FANG
|
PXD
|
|---|---|---|---|
Return on Assets (Normalized) | 15.38% | 12.53% | 13.94% |
Return on Equity (Normalized) | 32.24% | 21.98% | 22.40% |
Return on Invested Capital (Normalized) | 21.67% | 15.63% | 18.32% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
COP
| ConocoPhillips | Jmxblbkm | Vydvnx | $149.7 Bil | |
EOG
| EOG Resources Inc | Pxvvxjxn | Yrjrq | $75.8 Bil | |
PXD
| Pioneer Natural Resources Co | Tzmynvlrl | Qjmwz | $62.6 Bil | |
OXY
| Occidental Petroleum Corp | Qdswvpvd | Xggzp | $58.5 Bil | |
HES
| Hess Corp | Vytwknmzq | Cwvwmk | $46.8 Bil | |
FANG
| Diamondback Energy Inc | Kdfzfgtvs | Hzgxv | $35.6 Bil | |
MRO
| Marathon Oil Corp | Dcjxzrz | Trp | $15.7 Bil | |
APA
| APA Corp | Mqlbszmv | Cdkgd | $12.0 Bil | |
AR
| Antero Resources Corp | Wsrtcdq | Zdpk | $8.8 Bil |
