Devon Energy (DVN) Stock

Users of Zacks.com have been paying a lot of attention to Devon Energy (DVN) lately. Therefore, it's important to understand the key information that could influence the stock's future.

Oil prices have fluctuated significantly this year. At one point, the WTI, which is the main benchmark price in the U.S., increased to more than $85 per barrel.

We believe that DVN's pause on variable dividends is just a short-term measure until their financial situation improves, as management is focusing more on buying back shares at lower prices. Their debt levels are still manageable compared to others in the industry, which suggests that the recent sell-off was excessive. Although WTI crude oil prices have decreased from their peak during the pandemic, they are expected to stay strong in the $70 range due to ongoing OPEC+ production cuts.

Devon Energy is a leading option for investing in the energy sector, thanks to its solid value indicators and increased production from the Grayson Mill acquisition. The company's stock has fallen more than 50% since its peak in 2022, creating a good chance to buy, especially with a pro-energy government under Donald Trump. Devon also offers a good dividend yield and is concentrating on reducing debt and buying back shares, which puts it in a strong position for a possible rise in oil prices.

The recent decline in energy stocks offers some appealing chances for investors looking for dividends. I will compare two promising options, DVN and PR. I'll reveal which of these two energy stocks, known for their dividend growth and significant buybacks, is the better choice at this moment.

Users of Zacks.com have been paying a lot of attention to Devon Energy (DVN) lately. Therefore, it's important to understand the key information that could influence the stock's future.

Devon Energy has a high-quality collection of assets in five different basins, particularly emphasizing the Delaware Basin, which helps them produce efficiently and save on costs. Even with fluctuating oil prices, their diverse assets and solid cash flow allow them to keep paying dividends and buying back shares, making them an attractive investment. The company also has a strong financial standing, with $4 billion in available funds and a plan to reduce debt strategically.

Devon Energy Corporation is currently trading at low multiples while increasing its production. Shale companies are undervalued in the present market and could bounce back when a trigger occurs. Investors seeking a solid free cash yield of over 15% should think about whether DVN aligns with their risk tolerance.

A number of oil companies made significant acquisitions, such as ConocoPhillips and Devon Energy. ConocoPhillips finished buying Marathon Oil at the end of November. CEO Ryan Lance mentioned in a press release that this acquisition is an ideal match for ConocoPhillips.