DVN

DEVON ENERGY CORP/DE

Energy • CIK: 0001090012

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Market Cap
$23.13B
P/E (TTM)
8.7x
Rev Growth (TTM)
+7.8%
Net Margin (TTM)
15.4%
FCF Yield (TTM)
13.5%
FCF Margin (TTM)
18.1%

Filing Intelligence

5.0/10
10-K filed Feb 18, 2026 • FY 2025

Executive Summary

Lower commodity prices for oil and NGLs significantly impacted earnings, partially offset by higher gas prices and hedge settlements.. General and Administrative expenses per BOE decreased due to...

Key Concerns

  • ●Exclusion of asset dispositions, impairments, and fair value changes in financial instruments from 'Core earnings' non-GAAP measure.
  • ●Significant 'Unproved oil and gas property and equipment' ($1,771M) recognized in business combination purchase accounting.
  • ●Significant commitments exist for drilling, operational agreements, and equipment leases totaling $3.951 billion over multiple years, with...

Key Strengths

  • ●Increased production volumes, driven by the Grayson Mill acquisition and Delaware Basin activity, were a key driver of performance.
  • ●Production expenses rose due to increased activity, particularly in the Rockies, impacting margins.
  • ●Strong operating cash flow generation of $6.7 billion was maintained, supporting shareholder returns and liquidity.
View Full Quarterly Insights →

LATEST EARNINGS

•
Q4 2025
•
about 1 month ago
•View source
Revenue
N/A
—
Net Income
$562.00M
—
EPS
$0.90
—
  • •Production averaged 851,000 Boe per day in the fourth quarter, exceeding the top-end of guidance, driven by better-than-expected well performance, primarily in the Delaware Basin.
  • •Operations generated $1.5 billion of operating cash flow and $702 million of free cash flow during the fourth quarter.
  • •Invested $883 million of capital in the fourth quarter, 4 percent below midpoint guidance, due to effective cost management and timing of facility spend.
  • •Achieved 85 percent of the $1 billion business optimization target in 2025 and on track to fully achieve goal by year-end 2026.
View Full Earnings →

Cash Flow Health

Free Cash Flow8/8 positive
TTM$3.1B
Q4 '25
$702M-14%
Q3 '25
$820M+39%
FCF Margin
TTM18.1%
Q4 '2517.0%-10%
Sector: 8.8%Above Avg
OCF Margin39.0%
OCF/NI2.54x
CapEx Coverage1.9x
FCF Yield13.5%
FCF Growth (2Y)-16%
Cash Conversion Cycle
62 days
DSO: 40+DIO: 22−DPO: 0
View Insights from Latest Filing →View Full Cash Flow Statement →

Capital Allocation & Returns

Shareholder Friendly
Total Shareholder YieldTTM
TTM7.2%
Div Yield2.6%
+
Buyback (TTM)4.5%

Strong capital returns to shareholders

Dividend & Payout Metrics
Dividend Yield (TTM)2.6%
FCF Payout Ratio19.4%
Free Cash Flow (TTM)$3.1B
Stock Repurchases (TTM)$1.1B
Capital Return / FCF53.5%
Est. Dividends Paid (TTM)$606.2M
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
7.9%
Stable
-0.0% YoY-4.2%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
12.1%
8Q: 12.8%
Asset Turnover
0.55x
8Q: 0.58x
Leverage (1+D/E)
1.54x
D/E: 0.54x
DuPont: 10.3% ≈ 7.9% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
0.68x
8Q:0.71x
-10.6%
Invested Cap Turn
0.65x
8Q:0.68x
-9.6%
CapEx Intensity
13.6%
8Q:14.4%
CapEx/Depreciation
1.00x
Asset-based ROIC formula
Full Analysis

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q4 2024Q4 2024
Revenue
$17.2B
$4.1B↓4.8%
$4.3B↑1.1%
$4.3B↓3.8%
$4.5B↑1.1%
$4.4B↑9.4%
$4.0B↑2.7%
$3.9B↑8.9%
$3.6B
Operating Income
$2.7B
$562.0M↓18.9%
$693.0M↓24.4%
$917.0M↑80.2%
$509.0M↓22.1%
$653.0M↓20.8%
$825.0M↓3.5%
$855.0M↑40.4%
$609.0M
Net Income
$2.6B
$562.0M↓18.2%
$687.0M↓23.6%
$899.0M↑82.0%
$494.0M↓22.7%
$639.0M↓21.3%
$812.0M↓3.8%
$844.0M↑41.6%
$596.0M
Operating Cash Flow
$6.7B
$1.5B↓9.2%
$1.7B↑9.4%
$1.5B↓20.4%
$1.9B↑16.7%
$1.7B↑0.1%
$1.7B↑8.3%
$1.5B↓11.7%
$1.7B
Free Cash Flow
$3.1B
$702.0M↓14.4%
$820.0M↑39.2%
$589.0M↓41.6%
$1.0B↑36.6%
$738.0M↓6.1%
$786.0M↑33.9%
$587.0M↓30.5%
$844.0M
Total Equity
N/A
Income StatementCash Flow StatementBalance Sheet

Valuation Analysis

Fair Value
Price-to-EarningsTTM
8.7x
Volatile
8Q: 34.3x-916%
Valuation Lenses
Earnings
8.7x
vs – sector
Cash Flow
9.9x
EV/FCF vs –
Growth-Adj
1.1xPEG
Fair for growth
Quality-Adj
1.1P/E per %ROIC
ROIC: 7.9%
Shareholder Returns
Dividend
2.6%
Buyback
4.5%
Total Yield
7.2%
Market Cap$23.13B
EV$30.97B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
82/100
Exceptional

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Top 25%
17.6%
8Q:–
Return on Invested Capital (ROIC)Top 25%
7.9%
8Q:–
-4.2%
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 12.1%
Asset Turnover: 0.55x

Earnings Quality

Cash Conversion

2.54x

OCF / Net Income ✓

FCF Consistency

–

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin67.2%

Capital Efficiency

Invested Capital Turnover0.65x

Working Capital

Cash Conversion Cycle62 days

Growth Quality & Momentum

Low Quality
Growth Quality Score
50/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
7.8%
OpInc Growth YoY
-13.9%
EPS Growth YoY
-8.4%
FCF 3Y CAGR
-16.5%

Growth Quality Analysis

⚠Working Capital Drag: FCF growth lagging revenue by 24.3%
⚠Sustainability Index: 3.0/10 - Growth sustainability concerns

Margin Quality & Sustainability

Moderate
Profitability Cascade
Gross
67.2%
Operating
15.6%
Above Avg in sector
Net
15.4%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
+2.8 pts
FCF: 18.1% | Net: 15.4%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Adequate
Net Debt / EBITDA
–Net Debt: $6.96B
Interest Coverage
–
Balance sheet risk & solvency analysis

Research

All research