Devon’s Undervaluation Remains A Boon As Management Executes Brilliantly – Reiterate Buy


  • DVN’s hedging in FQ1’24 has not turned out as expected, triggering impacted top/ bottom lines.
  • Combined with the management’s intensified focus on balance sheet deleveraging and share count retirement, it is unsurprising that recent dividend payouts have underwhelmed.
  • This is on top of its “price discipline as an acquirer,” resulting in DVN missing out on multiple M&A activities observed in the oil/ gas sector thus far.
  • However, with current spot prices higher than those observed in Q1’24, we expect things to improve moving forward, further aided by the OPEC+ reiterated production cuts through 2025.
  • Investors only need to remain patient for DVN’s eventual upward rerating, while collecting its variable/ fixed dividend payouts in the meantime.



We previously covered Devon Energy (NYSE:DVN) in March 2024, discussing its inherent undervaluation compared to its peers, despite the healthier balance sheet, raised fixed dividends, and sustained share retirement.

With a prospective market re-rating likely to bring forth

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