Latest news with #DevonEnergyCorp
Yahoo
01-05-2025
- Business
- Yahoo
Is Devon Energy Corp. (NYSE:DVN) a Small-Cap Energy Stock Hedge Funds Are Buying?
We recently published a list of the 15 Small-Cap Energy Stocks Hedge Funds Are Buying. In this article, we are going to take a look at where Devon Energy Corp. (NYSE:DVN) stands against other small-cap energy stocks. On April 12, Bill Perkins, Skylar Capital Management CEO, appeared on 'Closing Bell Overtime' on CNBC to talk about how the energy sector is struggling due to fears of decreased fuel demand. Perkins discussed that the trade policy majorly drives the sentiment across the energy landscape and hence affects natural gas, energy stocks, bonds, and other related assets. Noting the difficulty in predicting the long-term outcome of these policies, he questioned whether the tariffs are temporary. The conversation then shifted to the impact of recent tariff announcements. Perkins acknowledged that natural gas prices initially performed better than other commodities following the announcements, which gives rise to speculations that LNG could become a key bargaining chip in future trade negotiations. He explained that, at the time, natural gas fundamentals were strong, and the US had the potential to use LNG exports as a diplomatic tool to help reduce trade deficits with other countries. However, Perkins acknowledged that the overarching macroeconomic fear of a global slowdown soon overshadowed these fundamentals, which affected both the crude oil and natural gas markets. As a result, prices dropped to levels that might stimulate some demand and offer a buffer against further declines, particularly if the tariff conflict drags on and risks pushing the economy into a recession or even a depression. Perkins also addressed the effect of price pressure on production, specifically referencing West Texas Intermediate (WTI) crude oil. He pointed out that WTI prices had reached a threshold (~$60 per barrel) where growth in the Permian Basin would likely halt or even decline. At these price levels, producers become reluctant to invest in new drilling, especially given the backwardated crude curve, which showed future prices at $58 to $59 per barrel. This scenario would not only limit oil production growth in the Permian but also reduce the output of associated natural gas from the region. Perkins described this production restraint as a bullish factor that could help offset some of the prevailing uncertainty. Perkins predicted that oil and gas executives would adopt a cautious tone in their commentary. He explained that, due to the unpredictability of the global macro environment, executives would likely let market signals guide their decisions about ramping up or scaling back drilling programs. We first sifted through the Finviz stock screener and Insider Monkey's Q4 2024 hedge funds database. For this article, we define small-cap stocks as those that trade between $10 billion and $30 billion. We then selected the top 15 stocks according to hedge funds and ranked them in ascending order of the number of hedge funds that have stakes in them. In cases where an equal number of hedge funds held two or more stocks, we used the market cap as a tiebreaker. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A group of technicians in hazmat suits inspecting a natural gas storage tank. Market Capitalization as of April 25: $20.35 billion Number of Hedge Fund Holders: 55 Devon Energy Corp. (NYSE:DVN) explores, develops, and produces oil, natural gas, and natural gas liquids. It operates in the Delaware Basin located in southeast New Mexico and west Texas, Eagle Ford located in North America, Anadarko Basin located in western Oklahoma, Williston Basin located in North Dakota, and Powder River Basin located in Wyoming. In Q4 2024, Devon's oil production reached an all-time high of 398,000 barrels per day, which was driven by its Eagle Ford wells. The company also finalized an agreement with BPX to dissolve its partnership in the Blackhawk field, which consolidates Devon's control over ~46,000 net acres in DeWitt County. The Eagle Ford asset holds about 550 of the company's 700 remaining undrilled locations. Devon's overall oil and gas production hit 848,000 BOE per day in Q4. The total company revenue came in at $4.4 billion, which was up 6.22% year-over-year. and above estimates by over $155.3 million. The company's adjusted EPS of $1.16 also topped expectations by $0.16. The 2025 production outlook for Eagle Ford is projected to be 383,000 BOE per day, while the overall company target stands at 815,000 BOE per day. On February 19, Mizuho Securities raised Devon's price target to $49 from $47 while keeping an Outperform rating. Overall, DVN ranks 5th on our list of the small-cap energy stocks hedge funds are buying. While we acknowledge the growth potential of DVN, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DVN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
21-04-2025
- Business
- Yahoo
Devon Energy Corp (DVN) Q4 2024 Earnings Call Highlights: Record Oil Production and Increased ...
Free Cash Flow: Generated $3 billion for the year, with $738 million in the fourth quarter. Shareholder Returns: Returned $2 billion for the year, including $444 million in the fourth quarter via dividends and share repurchases. Dividend Increase: Quarterly dividend increased to $0.24 per share, a 9% improvement over 2024. Oil Production: Reached an all-time high of 398,000 barrels per day in the fourth quarter. Cash Position: Increased to $850 million, up 25% from the previous quarter. Capital Investment: Expected to be $3.9 billion for 2025, $200 million lower than previous guidance. Production Outlook for 2025: Expected to deliver 815,000 BOE per day, including 383,000 barrels of oil per day. Natural Gas Production: More than 1.3 billion cubic feet per day, with revenue expected to more than double year-over-year. Net Debt-to-EBITDA Ratio Target: Aiming to drive below 1 times. Warning! GuruFocus has detected 4 Warning Sign with DVN. Release Date: February 19, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Devon Energy Corp (NYSE:DVN) reported exceptionally strong results for the fourth quarter of 2024, with record oil production reaching 398,000 barrels per day. The company generated $3 billion of free cash flow, returning $2 billion to shareholders, and increased its quarterly dividend by 9% to $0.24 per share. The successful integration of the Grayson Mill assets and the Williston Basin acquisition contributed significantly to the company's performance. Devon Energy Corp (NYSE:DVN) has maintained financial strength with ample liquidity and low leverage, positioning itself well for future growth. The company has identified $50 million in capital and expense savings from the Grayson Mill asset, exceeding its synergy target. Despite strong performance, there is caution against extrapolating the fourth quarter's production run rate as it may not be sustainable every quarter. The dissolution of the joint venture with BPX in the Eagle Ford may present operational challenges as Devon Energy Corp (NYSE:DVN) takes full control. The company faces potential impacts from tariffs on materials used in wells, although currently estimated to be less than a 2% impact on the capital program. Devon Energy Corp (NYSE:DVN) has a significant portion of its capital structure as debt, which could amplify equity volatility depending on commodity prices. The company has a limited inventory depth of 10 years at current production rates, raising concerns about long-term sustainability without further acquisitions or discoveries. Q: Could you remind us of the inventory duration you see within the Grayson Mill asset and how that compares with your legacy assets? A: We were short on inventory before acquiring Grayson Mill, which filled that gap. We now have close to a decade of opportunity in the Williston Basin, including Grayson. The productivity and cost improvements have been significant, and we are running at a sustainable pace. Q: Can you give us some background on the Eagle Ford split with BPX and how the allocation was decided? A: The split was mutually beneficial as both parties valued different assets more. We expect to save over $2 million per well with improved operational control and design, which significantly enhances returns. Q: With the focus on Grayson Mill and operational efficiencies, do you anticipate more growth in the Rockies later in the year? A: We plan to keep Grayson Mill production flat with three rigs. The Powder River Basin will focus on science work to unlock potential, balancing growth and operational efficiency. Q: Are you focusing more on organic growth versus M&A, and is buying back your own stock the optimal strategy? A: Yes, we see tremendous value in organic growth through operational improvements and technology application. While we remain open to consolidation, our primary focus is enhancing Devon's existing assets. Q: Can you explain the rationale behind dissolving the Eagle Ford partnership and the expected value uplift? A: The dissolution allows us to save $2 million per well, enhancing NPV. Controlling the pace of operations and leveraging refrac opportunities are key value drivers. This move is mutually beneficial for both parties. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
26-03-2025
- Business
- Yahoo
Devon Energy Schedules First-Quarter 2025 Earnings Release and Conference Call
OKLAHOMA CITY, March 26, 2025 (GLOBE NEWSWIRE) -- Devon Energy Corp. (NYSE: DVN) today announced it will report first-quarter 2025 results on Tuesday, May 6, after the close of U.S. financial markets. The earnings release and presentation for the first-quarter 2025 results will be available on the company's website at On Wednesday, May 7, the company will hold a conference call at 10 a.m. CDT (11 a.m. EDT), which will consist primarily of answers to questions from analysts and investors. A webcast link to the conference call will be provided on Devon's website at A replay will be available on the website following the call. ABOUT DEVON ENERGY Devon Energy is a leading oil and gas producer in the U.S. with a diversified multi-basin portfolio headlined by a world-class acreage position in the Delaware Basin. Devon's disciplined cash-return business model is designed to achieve strong returns, generate free cash flow and return capital to shareholders, while focusing on safe and sustainable operations. For more information, please visit Investor Contact Media Contact Michelle Hindmarch, 405-552-7460 405-228-4450
Associated Press
26-03-2025
- Business
- Associated Press
Devon Energy Schedules First-Quarter 2025 Earnings Release and Conference Call
OKLAHOMA CITY, March 26, 2025 (GLOBE NEWSWIRE) -- Devon Energy Corp. (NYSE: DVN) today announced it will report first-quarter 2025 results on Tuesday, May 6, after the close of U.S. financial markets. The earnings release and presentation for the first-quarter 2025 results will be available on the company's website at On Wednesday, May 7, the company will hold a conference call at 10 a.m. CDT (11 a.m. EDT), which will consist primarily of answers to questions from analysts and investors. A webcast link to the conference call will be provided on Devon's website at A replay will be available on the website following the call. ABOUT DEVON ENERGY Devon Energy is a leading oil and gas producer in the U.S. with a diversified multi-basin portfolio headlined by a world-class acreage position in the Delaware Basin. Devon's disciplined cash-return business model is designed to achieve strong returns, generate free cash flow and return capital to shareholders, while focusing on safe and sustainable operations. For more information, please visit
Yahoo
05-03-2025
- Business
- Yahoo
John Krenicki Jr. to Retire from Devon Energy Board of Directors
OKLAHOMA CITY, March 05, 2025 (GLOBE NEWSWIRE) -- Devon Energy Corp. (NYSE: DVN) announced today that John Krenicki Jr. is retiring from the company's board of directors at the end of his current term and will not stand for re-election at the company's annual meeting of stockholders, which is scheduled for June 4, 2025. Mr. Krenicki plans to focus on his full-time responsibilities at CD&R, a private equity firm where he currently serves as Vice Chairman. "John Krenicki has served with distinction on Devon's board since 2018, leaving a mark through his dedication. We are grateful for his years of service, during which he offered strategic guidance and wise counsel, including with the transformative merger of Devon and WPX Energy in 2021. We wish John the best in the continued growth of his private equity ventures," said John Bethancourt, Devon's Chairman. ABOUT DEVON ENERGY Devon Energy is a leading oil and gas producer in the U.S. with a diversified multi-basin portfolio headlined by a world-class acreage position in the Delaware Basin. Devon's disciplined cash-return business model is designed to achieve strong returns, generate free cash flow and return capital to shareholders, while focusing on safe and sustainable operations. For more information, please visit Investor Contact Media Contact Michelle Hindmarch 405-228-4450 405-552-7460 This press release was published by a CLEAR® Verified in to access your portfolio
