Devon Energy Is A Compelling Energy Buy For 2025

Summary:

• Devon Energy is a top choice for energy sector allocation, with strong value metrics and a significant production boost from the Grayson Mill acquisition.
• The company’s stock has dropped over 50% from 2022 highs, presenting a buying opportunity, especially with a pro-energy administration under Donald Trump.
• Devon maintains an attractive dividend yield and is focused on debt reduction and share buybacks, positioning well for a potential oil price rally.
• Incoming CEO Clay Gaspar may bring new strategic ideas, enhancing Devon’s ability to deliver competitive and sustainable returns for shareholders.

I wrote an article about oil prices this week as I expect that we may be basing for a rally. In that article, I also noted that it was a good time to allocate more to the energy sector as

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in DVN over the next 72 hours. 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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