Devon Energy Stock Is A Buy

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Devon Energy Stock Is A Buy

Devon Energy (Dvn) Stock Is A Buy Or Sell?

Devon Energy (DVN) is one of the stocks that is on everyone's radar & for the right reasons. Anyone who is bullish on oil & gas for the long term will definitely view Devon Energy (DVN) as an attractive option.

The recent results of Devon Energy (DVN) also show strong operational progress. The most notable one is the company's integration of the recent acquisition (Grayson Mill).

Total Production Near 848k Barrels

The total production of oil & gas by Devon Energy (DVN) was around 848K barrels per day during Q4. This was a little higher than the estimate of 811K barrels per day.

Devon Energy (DVN) managed to outperform due to higher well productivity. Also, the acquisition of Grayson Mill helped the company to increase its production.

Given these impressive results, the management decided to increase the 2025 guidance by 2%. So, the new range is now 805K - 825K barrels per day. The management is also forecasting a $3 billion worth of FCF with an average oil price of $70/barrel.

All of this shows that the valuation of Devon Energy (DVN) is really impressive for investors. Also, the management has proved its worth with the successful acquisition and integration of the Grayson Mill.

Furthermore, it appears that Devon Energy (DVN) is now also focusing on share repurchases and debt repayment. This might affect their policy of variable dividends but will help the company in the long term.

Th reduction of the debt will help the company to pay less in interest payments going forward. So, going forward, Devon Energy (DVN) will be in a better position to give dividends to its investors.

So, those who only want to buy Devon Energy (DVN) because of dividends will be disappointed. But for those who want to buy the stock in hopes of price appreciation, things look pretty good.

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