Devon Energy: 4% Yield, 7X P/E, $5 Billion Stock Buyback (Rating Upgrade)

Summary:

  • Devon Energy’s strategic acquisition in the Williston Basin diversifies its production footprint and is expected to drive earnings growth.
  • The company has increased its stock buyback authorization to $5B, enhancing its appeal as a top capital return play.
  • Devon Energy’s valuation remains attractive with a forward P/E ratio of 6.9X, offering potential long-term capital upside.

Oil pumps and wind mill during sunset.

Torsten Asmus

Devon Energy (NYSE:DVN) announced a strategic acquisition in the Williston Basin in the third quarter, which is further diversifying the independent E&P company’s production footprint. Devon Energy is also set to buy back more of its own shares


Analyst’s Disclosure: I/we have a beneficial long position in the shares of DVN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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