NYSE · DVN

Devon Energy Corporation

Energy · Oil & Gas Exploration & Production

$48.72▲ 0.58% ($0.28)at close

Pre-market$48.12▼ 1.23%5:01 AM ET

52-week

$31.47$52.71

Market cap

$53.59B

P/E

13.96

EPS (TTM)

$3.49

Next earnings

Nov 4, 2026

What the market price implies · Reverse DCF

To support a price of $48.72, this model requires revenue to grow by 2.95%/yr over the next 10 years, compounded annually.

Historical revenue grew by 8.93%/yr over the past 4 years. The required annual growth rate is 5.98 percentage points lower.

Selected forecast · Base scenario

17.64%/yr · actual 10-year annualized revenue growth

Year 1 growth: 28.85%

Market-implied · Base operating assumptions + edited margins

2.95%/yr · flat 10-year annualized revenue growth

Reverse DCF solves revenue growth itself using Base operating assumptions and your edited margins. Changing forecast growth alone does not change the implied rate. This is a model-implied requirement, not an analyst forecast.

Valuation

Recommended · Revenue & margin DCF

Price used

$48.72

Estimated value / share

$180.26

Base scenario

This estimate is 269.99% above the price used.

USD · TTM ending 2026-06-30

Latest quarterly growth differs materially from the latest annual pace. It remains an observed growth input; review whether acceleration or a change in the business explains it.

This estimate is at least 3× the price used. Review the growth, margin and investment assumptions behind the gap.

Year 1 growth 28.85% · Ending margin 19.04% · Discount rate 7.02%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future revenue, operating margins, and the investment needed to support them.

Price timestamp: Sep 17, 2026, 8:00 PM UTC
Financial statement period: TTM ending 2026-06-30
Data refreshed: Sep 18, 2026, 9:19 AM UTC · provider

Why this method?

There is not a stable run of positive FCFF to anchor a direct cash-flow CAGR, so the model should start from revenue and margin assumptions instead.

Is FCFF positive and has it been for 3+ consecutive years? Only 1 consecutive positive FCFF years are available.

Price vs Fundamentals

Why The Stock Is Moving

Optimism is getting priced inHigh confidence

1Y Price: 37.59%Revenue (TTM): 14.64%FCF (TTM): 376.69%P/FCF: 72nd pct

What changed

The stock rose 37.59% over the last year. Revenue grew 14.64% over the trailing twelve months. Operating margin moved from 24.34% to 23.86%. Free cash flow grew 376.69% over the trailing twelve months.

What the market seems to be pricing

The stock is trading toward the richer end of its historical P/FCF range (72nd percentile) while business metrics are improving. More of the upside is already embedded in the multiple now.

What would invalidate this read

Operating margin is at 23.86% — continued expansion would be needed to justify the premium. Revenue growth of 14.64% is encouraging, but any deceleration puts the stretched multiple at risk. This read changes if revenue, margins, and cash flow continue to improve faster than expected — in that case the richer multiple could still prove conservative.

Performance

Return analysis

Company profile

As an independent energy producer, Devon Energy Corporation primarily focuses on the exploration, development, and extraction of oil, natural gas, and natural gas liquids within the United States.

CEOClay Gaspar

SectorEnergy

IndustryOil & Gas Exploration & Production

Employees2,200

IPO dateJul 22, 1985

https://www.devonenergy.com

Market multiples

Forward P/E—

EV/EBITDA4.02

Enterprise value$30.35B

Stock splits

Nov 16, 2004↑ Forward

Every 1 shares became 2

+100%

Profitability & growth

Revenue growth73.13%

Gross margin (FY2025)25.55%▼4.0ppvs FY2024

Operating margin (FY2025)22.43%▼3.8ppvs FY2024

ROE11.55%▼6.1ppvs FY2025

Analyst consensus

RatingBuy

Target price$61.93▲27.11%

Buy

Hold

Sell

Analyst ratings tend to be lagging indicators. Use as one signal among many.

Earnings

Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.

Next report

Nov 4, 2026

Q4 FY26 · EPS est $1.18 · Revenue est $6.37B

View

Dividends

$1.12/shareQuarterlySafe

DVN pays a dividend with a 2.3% dividend yield, covered 4.5× by free cash flow.

Dividend Yield

2.3%

Annual Div / Share

$1.12

5yr CAGR

-2.02%

Dividend has been cut

Payout Ratio

25.03%

Safe

Dividend Growth Rate

3yr CAGR

-31.27%

5yr CAGR

-2.02%

10yr CAGR

+10.31%

Dividend Safety

10/10Safe

Dividend History

Annualized dividend cycles per share

YearAnnual DivYoY

2026$1.12+19.1%

2025$0.94-53.0%

2024$2.00-42.0%

2023$3.45-26.0%

2022$4.66+275.8%

2021$1.24+117.5%

2020$0.57+62.9%

Income Projection

Invest

USD

Growth rate:

Reinvest dividends

Today

$23/yr

$2/mo

In 5 yrs

$23/yr

$2/mo

In 10 yrs

$23/yr

$2/mo

Today	In 5 yrs	In 10 yrs
$23/yr $2/mo	$23/yr $2/mo	$23/yr $2/mo

Analysis

Dividend Strengths

Well-covered by free cash flow

The dividend is covered 4.5× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.

Risks to Watch

Dividend has been reduced

The 5-year dividend CAGR of -2.02% is negative, indicating the payout has been cut over this period.

NYSE · DVN

Devon Energy Corporation

Energy · Oil & Gas Exploration & Production

$48.72▲ 0.58% ($0.28)at close

Pre-market$48.12▼ 1.23%5:01 AM ET

52-week

$31.47$52.71

Market cap

$53.59B

P/E

13.96

EPS (TTM)

$3.49

Next earnings

Nov 4, 2026

What the market price implies · Reverse DCF

To support a price of $48.72, this model requires revenue to grow by 2.95%/yr over the next 10 years, compounded annually.

Historical revenue grew by 8.93%/yr over the past 4 years. The required annual growth rate is 5.98 percentage points lower.

Selected forecast · Base scenario

17.64%/yr · actual 10-year annualized revenue growth

Year 1 growth: 28.85%

Market-implied · Base operating assumptions + edited margins

2.95%/yr · flat 10-year annualized revenue growth

Valuation

Recommended · Revenue & margin DCF

Price used

$48.72

Estimated value / share

$180.26

Base scenario

This estimate is 269.99% above the price used.

USD · TTM ending 2026-06-30

Latest quarterly growth differs materially from the latest annual pace. It remains an observed growth input; review whether acceleration or a change in the business explains it.

This estimate is at least 3× the price used. Review the growth, margin and investment assumptions behind the gap.

Year 1 growth 28.85% · Ending margin 19.04% · Discount rate 7.02%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future revenue, operating margins, and the investment needed to support them.

Price timestamp: Sep 17, 2026, 8:00 PM UTC
Financial statement period: TTM ending 2026-06-30
Data refreshed: Sep 18, 2026, 9:19 AM UTC · provider

Why this method?

There is not a stable run of positive FCFF to anchor a direct cash-flow CAGR, so the model should start from revenue and margin assumptions instead.

Is FCFF positive and has it been for 3+ consecutive years? Only 1 consecutive positive FCFF years are available.

Price vs Fundamentals

Why The Stock Is Moving

Optimism is getting priced inHigh confidence

1Y Price: 37.59%Revenue (TTM): 14.64%FCF (TTM): 376.69%P/FCF: 72nd pct

What changed

What the market seems to be pricing

The stock is trading toward the richer end of its historical P/FCF range (72nd percentile) while business metrics are improving. More of the upside is already embedded in the multiple now.

What would invalidate this read

Performance

Return analysis

Company profile

As an independent energy producer, Devon Energy Corporation primarily focuses on the exploration, development, and extraction of oil, natural gas, and natural gas liquids within the United States.

CEOClay Gaspar

SectorEnergy

IndustryOil & Gas Exploration & Production

Employees2,200

IPO dateJul 22, 1985

https://www.devonenergy.com

Market multiples

Forward P/E—

EV/EBITDA4.02

Enterprise value$30.35B

Stock splits

Nov 16, 2004↑ Forward

Every 1 shares became 2

+100%

Profitability & growth

Revenue growth73.13%

Gross margin (FY2025)25.55%▼4.0ppvs FY2024

Operating margin (FY2025)22.43%▼3.8ppvs FY2024

ROE11.55%▼6.1ppvs FY2025

Analyst consensus

RatingBuy

Target price$61.93▲27.11%

Buy

Hold

Sell

Analyst ratings tend to be lagging indicators. Use as one signal among many.

Earnings

Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.

Next report

Nov 4, 2026

Q4 FY26 · EPS est $1.18 · Revenue est $6.37B

View

Dividends

$1.12/shareQuarterlySafe

DVN pays a dividend with a 2.3% dividend yield, covered 4.5× by free cash flow.

Dividend Yield

2.3%

Annual Div / Share

$1.12

5yr CAGR

-2.02%

Dividend has been cut

Payout Ratio

25.03%

Safe

Dividend Growth Rate

3yr CAGR

-31.27%

5yr CAGR

-2.02%

10yr CAGR

+10.31%

Dividend Safety

10/10Safe

Dividend History

Annualized dividend cycles per share

YearAnnual DivYoY

2026$1.12+19.1%

2025$0.94-53.0%

2024$2.00-42.0%

2023$3.45-26.0%

2022$4.66+275.8%

2021$1.24+117.5%

2020$0.57+62.9%

Income Projection

Invest

USD

Growth rate:

Reinvest dividends

Today

$23/yr

$2/mo

In 5 yrs

$23/yr

$2/mo

In 10 yrs

$23/yr

$2/mo

Today	In 5 yrs	In 10 yrs
$23/yr $2/mo	$23/yr $2/mo	$23/yr $2/mo

Analysis

Dividend Strengths

Well-covered by free cash flow

The dividend is covered 4.5× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.

Risks to Watch

Dividend has been reduced

The 5-year dividend CAGR of -2.02% is negative, indicating the payout has been cut over this period.