DVN US S&P 500Russell 1000 Earnings call
Devon Energy (DVN) · Q2 2026 results and valuation
Share price: $44.95 · 2026-11-11
Devon Energy is an American company engaged in hydrocarbon exploration. It operates in the Delaware Basin, Eagle Ford Group, and the Rocky Mountains. Source: Wikipedia
Results Q2 2026 vs Q1 2026 · previous quarter · published 5 Aug 2026 and 6 May 2026
Revenue up 94.8% on the previous quarter. Management sounded restrained, in its script and in answers to analysts.
1 · Numbers
+94.8%
Revenue vs Q1 2026
Outlook given
Revenue 7.42B vs 3.81B
Against the same quarter last year (Q2 2025) it is +73.1%, so it is not just seasonal.
Why Against the same quarter last year (+73.1%), revenue increased primarily because the second quarter results reflect legacy Devon operations for the full quarter plus Coterra beginning on May 7.
2 · How management spoke
Restrained
Less upbeat than 69% of company calls
Answers to analysts: restrained, in line with the script.
Similar to last call.
3 · What stood out
Devon Energy completed its $1.25 billion debt reduction target for 2026 following a strong operational beat in the quarter.
Valuation
Is Devon Energy undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At −3.6% growth a year (3-year revenue growth), the model's fair value is $14.93 a share — the stock trades 201% above it. Today's price assumes 7.3% growth a year.
Current price
$44.95
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+7.3% for 10 yrs
Fair value / share
$14.93
Buy below
$11.19
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Read between the lines
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Guidance
The company outperformed second quarter guidance across key value drivers, resulting in $1.7 billion adjusted free cash flow.
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Guidance
The company reported confidence in achieving a $1 billion synergy target based on more than 350 synergy initiatives currently taking shape.
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Guidance
The company completed its $1.25 billion debt reduction target for 2026 following a strong operational beat in the quarter.
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Key theme
The company expects third-quarter capital spending to reach $1.4 billion to $1.5 billion, marking its highest capital quarter of 2026 due to combined activity and shifted timing.
Source quote
“We also expect total volumes of 1.66 million to 1.69 million barrels of oil equivalent per day in the third quarter and total capital of $1.4 billion to $1.5 billion, which should be our highest capital quarter of 2026 and simply reflects a full quarter of combined activity and the timing of some capital that shifted from the second quarter.”
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Figure
The company plans to scale a program in the Delaware Basin to 20 jobs a month.
Source quote
“So this is also yet another program that we're planning on scaling in the Delaware Basin, looking at going to 20 jobs a month.”
4 more
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Guidance
The company met its 2026 debt reduction target through existing maturities in the quarter.
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Guidance
The company plans to deliver quickly against synergy targets, roll out a capital-efficient 2027 plan, and lean into repurchasing shares to enhance its balance sheet.
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Figure
The company's AI-enabled system now autonomously optimizes 1,000 wells in real-time to respond to changing conditions and provides a clear path to broad deployment across the company.
Source quote
“With our AI-enabled system now autonomously optimizing 1,000 wells real-time 24 hours a day, the ability to immediately respond to constantly changing well conditions keeps the production on the efficient frontier and we have a clear path to broad deployment around the company.”
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Figure
Initial 2027 views will be released in November during the 3Q call.
Source quote
“You had mentioned that the initial 2027 views will come out in November on the 3Q call.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“You merged 2 proud companies in record time without missing a beat in the field.”
“Cherry-picking the best opportunities takes them out of the inventory list, but also can have a material impact to the remaining locations.”
“I couldn't be more excited about the future of our company and the opportunities that lie ahead for the company and our owners.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 7.42B | 3.81B | +94.8% | 4.28B | +73.1% |
| Operating income | 2.38B | 166.0M | +1336.1% | 1.16B | +105.3% |
| Net income | 1.91B | 120.0M | +1492.5% | 899.0M | +112.6% |
| EPS | 2.03 | 0.19 | +968.4% | 1.41 | +44.0% |
| P/E today 9.9 | 9.0 | 14.0 | −5.0 | 7.2 | +1.8 |
Topics
Most discussed now
- New Devon Energy will deliver quickly against its synergy targets, updating you quarter-by-quarter, making fast progress on its portfolio…
- New You've got a creative idea kind of bringing Devon Energy's way.
- New The CPV project that Devon Energy has got coming online in '28 for 115 million a day that's going to...
- New Going forward for the balance of the year, Devon Energy remains positioned well between firm takeaway capacity and its hedge position.
- With both legacy companies having recent integration experience, the combination has gone even better than Devon Energy planned.
Faded since Q1 2026
- Fading Think about the enhancement of opportunities that Devon Energy has with much lower D&C cost, with better production, thinking...
- Fading What I want to give investors confidence in is when Devon Energy says $1 billion by the end of next year,...
- Fading Devon Energy does not want to presume one direction before it actually do the work and have the important alignment conversations...
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
- Regulation FD disclosure; Other events · SEC 8-K
Devon Energy entered into an agreement to sell its Eagle Ford assets to Crescent Energy Company for $4.2 billion in cash.
- Director or officer change · SEC 8-K
The Compensation Committee approved an increase in CEO Clay M. Gaspar's base salary to an annualized rate of $1,500,000, effective retroactively as of May 7, 2026.
- Director or officer change · SEC 8-K
Devon Energy Corporation announced leadership changes effective August 20, 2026, including the appointments of Tom Hellman, Robert (Trey) Lowe III, and Kevin Smith to Executive Vice President roles.
- Results of operations · SEC 8-K
Devon Energy reported net earnings of $1.9 billion, or $2.03 per diluted share, and generated $1.7 billion of adjusted free cash flow in the second quarter of 2026.
- Shareholder vote results · SEC 8-K · routine
- Material agreement; New financial obligation; Other events · SEC 8-K
Devon Energy Corporation completed the settlement of existing Coterra notes and issued new senior notes with principal amounts of $627,099,000, $447,554,000, and $465,815,000 on June 25, 2026.
- Other events · SEC 8-K
Devon Energy Corporation filed a prospectus supplement on June 5, 2026, to register the issuance of up to 175,000 shares of common stock upon conversion of Coterra Preferred Stock.
Balance sheet & ownership
From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-11.
Cash & runway
Cash & equivalents
$950.0M
2026-06-30
Short-term investments
$869.0M
total $1.82B
Implied runway
—
operating cash flow positive over the TTM window
Dilution
weighted-average basic shares, per quarter. Change: +47.6% YoY, +52.1% QoQ.
| Quarter | Shares |
|---|---|
| Q3 2024 | 622.0M |
| Q1 2025 | 643.0M |
| Q2 2025 | 635.0M |
| Q3 2025 | 628.0M |
| Q1 2026 | 616.0M |
| Q2 2026 | 937.0M |
Shares outstanding: 1.10B (2026-07-22)
Insider transactions
Form 4 open-market trades (codes S/P), trailing 12 months. 45 filings parsed.
Sold by insiders
1.9M shares
$58.3M · 5 transactions
Bought by insiders
3.9K shares
$199.9K · 1 transactions
Net direction
net selling
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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2026
debt reduction target
Source quote
“and we have completed our $1.25 billion debt reduction target for 2026.”
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2027
program including new acreage
Source quote
“We are already filing permits, and this acreage will play a meaningful role in our 2027 program.”
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year-end 2027
delivery of at least $1 billion of annual synergy targets
Source quote
“y on track to deliver at least $1 billion of annual synergy targets by year-end 2027, and our confidence is higher today than the day we announced the deal with more than 350 initiatives now underway across 3 roughly equal buckets.”
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this year
increasing tests to more than 50 wells
Source quote
“Our first 10 trial wells across 6 different landing zones delivered clear uplift versus offset controls, and we are increasing our tests to more than 50 wells this year.”
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third quarter
active in the market for repurchases
Source quote
“We continue to be active in the market in the third quarter and the remaining $7.8 billion of repurchase authorization will be deployed through a dynamic blend of systematic and opportunistic repurchases going forward.”