| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 73 | 12.3x | 17.3x | Top tier | |
Growth | 63 | 13.9% | 7.1% | Around median | |
Quality | 51 | 9.7% | 4.5% | Around median | |
Safety | 67 | 1.2x | 2.6x | Top tier | |
Capital Return | 69 | 1.45% | 0.06% | Top tier | |
Momentum | 90 | 50.9% | -1.6% | Top tier | |
Sentiment | 73 | 13 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
43% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Devon Energy Corporation engages in the exploration and production of oil and natural gas, with its portfolio centered on the Permian Basin, particularly the Delaware Basin, and additional assets in Marcellus, Anadarko, Powder, and Williston. Its income is derived primarily from sales of oil, natural gas, and natural gas liquids, while its cash-generating capacity depends on production volumes, commodity prices, and drilling, completion, and transportation costs. Following the closing of the merger with Coterra Energy on May 7, 2026, Q2 FY2026 results included legacy Devon operations for the entire quarter and Coterra operations only from that date, so the comparison with the previous quarter does not represent purely organic growth.
Revenue in Q2 FY2026 was approximately $7.4 billion, compared with $3.8 billion in Q1 FY2026, while net income rose to $1.9 billion from $120 million and earnings per share reached $2.03 versus $0.19. Net income was equivalent to approximately 25.7% of revenue for the quarter, but gross profit margin is not available in the provided financial statements. On a trailing 12-month basis, the company recorded revenue of $16.8 billion, net income of $2.3 billion, and earnings per share of approximately $3.67, compared with revenue of $17.2 billion and net income of $2.6 billion in FY2025.
Operating data for Q2 FY2026 indicates oil production of 503 thousand barrels per day, exceeding the midpoint of guidance by 1.6%, and total production of 1.36 million barrels of oil equivalent per day at the high end of guidance. Oil therefore accounted for approximately 37% of total volumes on an equivalent-unit basis, while the remainder came from natural gas and natural gas liquids. Comprehensive operating costs, including transportation, gathering, and processing, were $8.23 per barrel of oil equivalent, while capital expenditures totaled $1.3 billion and the reinvestment rate was 43% of cash flow.
The average analyst price target is $60.77, within a range of $54 to $68, with a consensus rating of “Buy”; the average is approximately 15% above the 52-week range high of $52.71, and the lowest target is also slightly above that high. The stock's 52-week range is between $31.47 and $52.71, and the available information does not include a usable price-to-earnings multiple, so the rerating case depends on realizing the $1 billion in merger savings by the end of 2027 and sustaining free cash flow, weighed against commodity volatility risks and uncertainty surrounding the portfolio review.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Revenue was $7.4 billion, net income was $1.9 billion, and earnings per share were $2.03 in Q2 FY2026. Total production reached 1.36 million barrels of oil equivalent per day, and oil production was 503 thousand barrels per day, exceeding the midpoint of guidance by 1.6%. Higher volumes, stronger oil prices, and the inclusion of Coterra's results since May 7, 2026 helped deliver the company's highest quarterly earnings since 2022 and adjusted free cash flow of $1.7 billion.
The merger closed on May 7, 2026, and Q2 FY2026 results included Coterra's operations only from that date. The combination increased production by 66% according to the August 5, 2026 report, and Devon identified more than 350 synergy initiatives. The company targets annual savings of at least $1 billion by the end of 2027, but management emphasized that the impact had not yet fully appeared in the financial statements.
Devon narrowed its FY2026 oil production range to between 495 and 505 thousand barrels per day, with total production of approximately 1.4 million barrels of oil equivalent per day. It expects annual capital expenditures of between $4.8 billion and $5 billion. For Q3 FY2026, it targets oil production of between 550 and 560 thousand barrels per day and total production of between 1.66 and 1.69 million barrels of oil equivalent per day, with capital spending of between $1.4 billion and $1.5 billion.
Automated analysis for informational purposes only — not investment advice.
Devon's closed-loop AI system autonomously operates approximately 1,000 wells around the clock, with more than 2,000 additional applicable wells in the Permian. The company also uses a proprietary model that combines basin data to predict well performance and optimize spacing and completion design. In surfactant tests, 90% of the tested wells achieved measurable improvement exceeding 15% after 180 days, and the company plans to expand the test to more than 50 wells during FY2026.
The partners reached a final investment decision in August 2026 to build two 48-inch natural gas pipelines connecting the Permian Basin to Katy, Texas. Devon owns 25% of the project, compared with 50% for WhiteWater, 10% for MPLX, and 7.5% each for Diamondback Energy and Western Midstream. The system is intended to alleviate gas transportation bottlenecks and negative pricing in the Permian, but initial operations are scheduled for late 2029, with an additional expansion planned for 2030.
Devon paid a quarterly dividend of $0.32 per share in Q2 FY2026, an increase of 33% from the previous quarter, with total dividends of $366 million. It also repurchased 4.3 million shares during the final seven weeks of the quarter, leaving $7.8 billion under the $8 billion authorization. At the same time, it completed its FY2026 debt-reduction target of $1.25 billion and ended the quarter with $4 billion in liquidity, including $1 billion in cash.