Devon Energy
Devon Energy Corporation, an independent energy company, engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. The company operates in Delaware Basin located in southeast New Mexico and west Texas, Eagle Ford located in North Amer…
Devon Energy Corporation, an independent energy company, engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. The company operates in Delaware Basin located in southeast New Mexico and west Texas, Eagle Ford located in North America, Anadarko Basin located in western Oklahoma, Williston Basin located in North Dakota, and Powder River Basin located in Wyoming. Devon Energy Corporation was founded in 1971 and is headquartered in Houston, Texas.Priced within the modelled range
5-year outlook: Not shown because confidence is low: Earnings-based DCF agrees.
Other models: USD 63.85–64.31 (median 64.08). The recommended value is in line with them.
Why: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Details and the full model are below.
Market price within modeled range
Free-cash-flow DCF using a three-year average of free cash flow, because the latest figure is depressed by heavy investment or one-off items, with cash, debt, and shares from the latest report. Base assumptions are 5.31% growth, 2.5% terminal growth, and 9.2% discount. Low/high cases vary growth by 2 and terminal growth/discount by 1 percentage point; this illustrative range is not a statistical confidence interval or investment advice.
Assumptions: growth 5.31%, discount rate 9.20%, terminal growth 2.50% (sector defaults). See a worked example.
Blended growth assumption: 5.3% (sector default 4.6%, own revenue history 8.9%, analyst revenue consensus 3.9%).
Analyst consensus expects revenue growth of 3.9% a year; the growth assumption used is 5.3%.
Adjust assumptions
Why this model: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Compare models- Recommended: Free-cash-flow DCF — USD 48.05 (+12.1%)
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EPS-based Gordon proxy
— USD 63.85 (+48.9%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
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DCF (trailing free cash flow)
— USD 73.94 (+72.4%)
Not used: Not chosen: Free-cash-flow DCF ranks ahead of it for this company.
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FCFF (steady state)
— USD 64.31 (+50.0%)
Not used: Assumes only the long-run terminal growth rate from today, so it ignores the near-term growth expected.
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EV/EBITDA (12x)
— not applicable
Not used: Cannot be computed: EBITDA is missing, zero or negative.
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Fade DCF (10-year growth fade)
— USD 73.61 (+71.7%)
Not used: An alternative growth path (fading over 10 years) shown for comparison; the automatic choice does not use it.
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EV/Sales (Rule of 40)
— USD 17.77 (-58.6%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear USD 34.03 | -26.0% |
| Base USD 48.05 | 10.8% |
| Bull USD 71.47 | 40.0% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
At USD 42.88 the market implies about this annual free-cash-flow growth for 5 years (terminal 2.5%, discount 9.2%).
Compare: the market implies -3.5% a year, this model assumes 5.3%. The model is more optimistic than the price, which is why it reads as undervalued.
How the Free-cash-flow DCF value changes with growth (rows) and discount rate (columns). Green cells are above the current price.
| Growth \ Discount | 7.2% | 8.2% | 9.2% | 10.2% | 11.2% |
|---|---|---|---|---|---|
| 1.3% | 84.03 | 67.42 | 55.77 | 47.14 | 40.49 |
| 3.3% | 92.93 | 74.64 | 61.80 | 52.30 | 44.98 |
| 5.3% | 102.52 | 82.40 | 68.29 | 57.85 | 49.81 |
| 7.3% | 112.83 | 90.74 | 75.25 | 63.80 | 54.98 |
| 9.3% | 123.91 | 99.70 | 82.73 | 70.18 | 60.53 |
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 87 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 5 of 5 years profitable | 20 / 20 |
| Cash generation | free cash flow positive in 5 of 5 years | 20 / 20 |
| Growth | revenue +0.7% a year | 12 / 20 |
Peers in Energy
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| DVN (this company) | USD 42.88 | 10.8% | 10.3 | 1.7 | – | 100 |
| HBR.L Harbour Energy plc | GBP 2.62 | 61.8% | – | 1.4 | 7.9% | 92 |
| FANG Diamondback Energy | USD 179.58 | 36.7% | 24.4 | 1.3 | 2.4% | 100 |
| AKSO.OL Aker Solutions ASA | NOK 35.92 | 22.8% | 6.8 | 1.5 | 9.1% | 75 |
| BP.L BP p.l.c. | GBP 5.54 | 19.2% | – | – | 4.4% | 69 |
| SHEL.L Shell plc | GBP 36.98 | 15.8% | 12.3 | – | 2.9% | 84 |
| AKRBP.OL Aker BP ASA | NOK 315.50 | 11.8% | 162.4 | 1.9 | 7.4% | 96 |
| EOG EOG Resources | USD 144.89 | 6.1% | 11.1 | 2.4 | 2.8% | 92 |
| TTE.PA TotalEnergies SE | EUR 79.16 | 5.5% | 9.0 | 1.5 | 4.3% | 84 |
| Peer median | 11.7 | 1.5 | ||||
Dividends
Paid in the last 12 months: USD 1.12 per share · yield 2.61% at the current price.
| Year | Dividends per share |
|---|---|
| 2026 (so far) | 0.880 |
| 2025 | 0.960 |
| 2024 | 1.450 |
| 2023 | 2.870 |
| 2022 | 5.170 |
| 2021 | 1.970 |
Annual financial statement
Saved annual report · Fiscal year 2025 · SEC EDGAR annual filings · period ended 31 Dec 2025
| Revenue | USD 17,188,000,000 |
|---|---|
| EBITDA | USD |
| EBIT | USD |
| Net income | USD 2,642,000,000 |
| Free cash flow | USD 3,119,000,000 |
| Capital expenditures | USD -3,592,000,000 |
| Debt | USD 8,389,000,000 |
| Cash | USD 1,384,000,000 |
| Working capital | USD -80,000,000 |
| Shares outstanding | 633,000,000 |