Update shared on04 Sep 2025
Fair value Increased 0.076%Analyst sentiment on Devon Energy remains mixed, with bulls citing higher oil price expectations and strong production metrics, while bears note tax headwinds and muted free cash flow, resulting in the consensus price target holding steady at $45.45.
Analyst Commentary
- Bullish analysts highlight increased oil price expectations and positive macro outlook for U.S. E&P sector as key drivers for higher price targets.
- Upward price target revisions reflect anticipated production above midpoint guidance, supported by stable Permian Basin well productivity and execution on planned zone targets.
- Some bullish analysts cite sector-wide updates to price models for large cap U.S. oils and refiners, leading to sector re-ratings, including Devon Energy.
- Neutral analysts acknowledge solid operational performance but remain cautious due to factors such as near-term tax impacts affecting free cash flow, particularly from recent midstream asset sales.
- Bearish analysts lower price targets in anticipation of ongoing tax headwinds and muted free cash flow generation, despite expectations for robust production volumes.
What's in the News
- Devon Energy raised second quarter oil production guidance and expects full year 2025 oil volumes between 384,000 and 390,000 barrels per day, driven by strong well productivity and base performance.
- The company repurchased 7,866,000 shares (1.22%) for $249.98 million in the most recent tranche, completing 85,348,000 shares (13.09%) for $3,900.22 million under its ongoing buyback program.
Valuation Changes
Summary of Valuation Changes for Devon Energy
- The Consensus Analyst Price Target remained effectively unchanged, at $45.45.
- The Future P/E for Devon Energy remained effectively unchanged, at 10.65x.
- The Discount Rate for Devon Energy remained effectively unchanged, at 7.37%.
Disclaimer
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