This Cheap Energy Stock is on Track for a Significant Increase in Cash Flows
Devon Energy Corporation (NYSE:DVN) is one of the 12 Best Natural Gas Stocks to Buy According to Analysts.
A group of technicians in hazmat suits inspecting a natural gas storage tank.
Devon Energy Corporation (NYSE:DVN) generated an impressive $1 billion in free cash flow in the first quarter of 2025, returning nearly half to shareholders through dividends and share buybacks. Moreover, the company boasts an impressive corporate breakeven of $45, positioning it well to generate value even in a low-price environment that we witnessed over the last couple of months.
Devon Energy Corporation (NYSE:DVN) announced earlier this year that it is on track to deliver recently announced plans to boost its annual free cash flow by $1 billion by the end of 2026 by reducing drilling and completion costs and improving operating margins. At the company's current valuation multiples, capitalizing the after-tax impact of the targeted $1 billion of additional free cash flow could translate to an estimated $10 per share in value.
With a current Forward P/E ratio of 8.88, Devon Energy Corporation (NYSE:DVN) is included among the 10 Cheap Energy Stocks to Buy Now.
Devon Energy Corporation (NYSE:DVN) is a leading independent energy company engaged in finding and producing oil and natural gas, with operations focused onshore in the United States.
While we acknowledge the potential of DVN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 10 Best Nuclear Energy Stocks to Buy Right Now and
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