NYSE:DVN

Stock Analysis Report

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Executive Summary

Devon Energy Corporation, an independent energy company, primarily engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States.


Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Devon Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DVN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.4%

DVN

1.5%

US Oil and Gas

1.0%

US Market


1 Year Return

-54.4%

DVN

-35.9%

US Oil and Gas

4.1%

US Market

Return vs Industry: DVN underperformed the US Oil and Gas industry which returned -35.9% over the past year.

Return vs Market: DVN underperformed the US Market which returned 4.1% over the past year.


Shareholder returns

DVNIndustryMarket
7 Day-1.4%1.5%1.0%
30 Day15.4%9.0%5.4%
90 Day-27.4%-19.8%-5.7%
1 Year-53.4%-54.4%-32.9%-35.9%6.5%4.1%
3 Year-63.4%-64.8%-31.4%-38.6%28.3%19.8%
5 Year-79.9%-81.3%-39.1%-48.8%52.2%35.0%

Price Volatility Vs. Market

How volatile is Devon Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Devon Energy undervalued compared to its fair value and its price relative to the market?

1.19x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: DVN ($12.14) is trading above our estimate of fair value ($7.05)

Significantly Below Fair Value: DVN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DVN is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: DVN is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DVN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DVN is overvalued based on its PB Ratio (1.2x) compared to the US Oil and Gas industry average (0.6x).


Next Steps

Future Growth

How is Devon Energy forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

75.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DVN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: DVN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DVN's is expected to become profitable in the next 3 years.

Revenue vs Market: DVN's revenue is expected to decline over the next 3 years (-15.9% per year).

High Growth Revenue: DVN's revenue is forecast to decline over the next 3 years (-15.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DVN is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Devon Energy performed over the past 5 years?

56.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DVN is currently unprofitable.

Growing Profit Margin: DVN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DVN is unprofitable, but has reduced losses over the past 5 years at a rate of 56% per year.

Accelerating Growth: Unable to compare DVN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DVN is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-22.9%).


Return on Equity

High ROE: DVN has a negative Return on Equity (-34.43%), as it is currently unprofitable.


Next Steps

Financial Health

How is Devon Energy's financial position?


Financial Position Analysis

Short Term Liabilities: DVN's short term assets ($4.1B) exceed its short term liabilities ($1.6B).

Long Term Liabilities: DVN's short term assets ($4.1B) do not cover its long term liabilities ($5.6B).


Debt to Equity History and Analysis

Debt Level: DVN's debt to equity ratio (106.3%) is considered high.

Reducing Debt: DVN's debt to equity ratio has increased from 51.2% to 106.3% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable DVN has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: DVN is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 47.3% per year.


Next Steps

Dividend

What is Devon Energy's current dividend yield, its reliability and sustainability?

3.62%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: DVN's dividend (3.62%) is higher than the bottom 25% of dividend payers in the US market (1.75%).

High Dividend: DVN's dividend (3.62%) is low compared to the top 25% of dividend payers in the US market (4.73%).


Stability and Growth of Payments

Stable Dividend: DVN's dividend payments have been volatile in the past 10 years.

Growing Dividend: DVN's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: DVN is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: DVN's dividends in 3 years are forecast to be well covered by earnings (46.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure


CEO

Dave Hager (62yo)

4.75yrs

Tenure

US$13,795,899

Compensation

Mr. David A. Hager, also known as Dave, has been the President and Chief Executive Officer of Devon Energy Corporation since August 2015. Mr. Hager served as a Director of EnLink Midstream Partners, LP sin ...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD13.80M) is above average for companies of similar size in the US market ($USD6.00M).

Compensation vs Earnings: Dave's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
David Hager
President4.75yrsUS$13.80m0.21% $9.9m
Jeffrey Ritenour
Executive VP & CFO3.08yrsUS$4.39m0.061% $2.8m
Lyndon Taylor
Executive VP and Chief Legal & Administrative Officer0.67yrUS$8.24m0.040% $1.8m
Tana Cashion
Senior Vice President of Human Resources4.25yrsUS$2.44m0.018% $852.6k
Tony Vaughn
Special Advisor0.67yrUS$10.85m0.094% $4.4m
David Harris
Executive Vice President of Exploration & Production0.67yrUS$2.61m0.032% $1.5m
J. Nichols
Co-Founder & Chairman Emeritus3.92yrsUS$155.18kno data
Garrett Jackson
Vice President of Operations0.67yrno datano data
Jeremy Humphers
Senior VP & Chief Accounting Officer6yrsno data0.029% $1.4m
Alana Tetrick
VP of Corporate Finance & Treasurer3yrsno datano data

3.0yrs

Average Tenure

48yo

Average Age

Experienced Management: DVN's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Hager
President4.75yrsUS$13.80m0.21% $9.9m
J. Nichols
Co-Founder & Chairman Emeritus3.92yrsUS$155.18kno data
Mary Ricciardello
Independent Director12.42yrsUS$361.01k0.013% $621.7k
John Bethancourt
Independent Director6.33yrsUS$334.01k0.017% $795.0k
Duane Radtke
Independent Chairman0.92yrUS$392.58k0.013% $600.3k
Michael Kanovsky
Independent Director21.33yrsUS$351.01k0.044% $2.0m
John Krenicki
Independent Director1.92yrsUS$335.01k0.0041% $191.4k
Robert Mosbacher
Lead Director4.92yrsUS$359.72k0.012% $545.5k
Barbara Baumann
Independent Director6.33yrsUS$342.58k0.012% $571.1k
Robert Henry
Independent Director9.75yrsUS$333.01k0.0079% $368.9k

5.6yrs

Average Tenure

66.5yo

Average Age

Experienced Board: DVN's board of directors are considered experienced (5.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DVN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Devon Energy Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Devon Energy Corporation
  • Ticker: DVN
  • Exchange: NYSE
  • Founded: 1971
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$4.647b
  • Shares outstanding: 382.74m
  • Website: https://www.devonenergy.com

Number of Employees


Location

  • Devon Energy Corporation
  • 333 West Sheridan Avenue
  • Oklahoma City
  • Oklahoma
  • 73102-5015
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DVNNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 1988
DY6DB (Deutsche Boerse AG)YesCommon StockDEEURSep 1988
DVN *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNSep 1988
0I8WLSE (London Stock Exchange)YesCommon StockGBUSDSep 1988
D1VN34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 2019

Biography

Devon Energy Corporation, an independent energy company, primarily engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. It operates approximately 3,955 gross wells. The company was founded in 1971 and is headquartered in Oklahoma City, Oklahoma. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/26 11:34
End of Day Share Price2020/05/22 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.