Devon Energy Target Raised to $50 After Q4 Beats Revenue and Production Guidance
Roth Capital raised Devon Energy’s price target to $50 from $42 after Q4 results beat forecasts. Devon posted $4.12B revenue, $0.82 adjusted EPS, 390,000 barrels oil per day and $702M free cash flow while planning a 31% dividend increase and $5B repurchase authorization.
1. Roth Capital Raises Price Target
Roth Capital lifted Devon Energy’s price target to $50 from $42 and maintained a Buy rating after the company reported robust oil production at its Delaware Basin asset, which underpinned the quarterly beat.
2. Q4 Financial and Production Results
In Q4, Devon posted $4.12 billion in revenue, 14% above consensus estimates, delivered adjusted EPS of $0.82, and generated $702 million in free cash flow. Production averaged 390,000 barrels of oil per day (46% of total 851,000 Boe/d), at the top end of guidance.
3. Q1 Guidance and Capital Plan
For Q1 2026, Devon expects production to dip by 1% due to severe winter, with capital expenditures of $900 million. The company plans a 31% dividend increase to $0.315 per share and is considering a share repurchase authorization exceeding $5 billion following the Coterra merger.