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Stockchase Opinions

Bryn TalkingtonDevon Energy CorpDVNHOLDOct 18, 2023

The CEO will turn things around, but the free cash flow yield last year was 9% and below 3% this year. They need to fix that to attract share-buyers.

$50.08

Stock price when the opinion was issued

$42.21

As of Jun 18, 2026. Market Open.

oilgas
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DON'T BUY

Oil is in a glut now, and you can't own a commodity stock when that commodity is in a glut.

DON'T BUY

Devon is levered to the price of crude oil, which is why both are down.

BUY

Good time to buy with weakness in share price.
Very attractive increase in USA.
Producing record amounts of cash.
Good value investment for the long term.

HOLD

Generates decent variable income. Cash yield next year should be 12% with $80 oil, 16% if oil is $100. It's fine, but if you're an oil bull the way he is, this name doesn't fit the thesis.

DON'T BUY

He doesn't like oil and expects it to go lower. He wishes he didn't own any.

BUY ON WEAKNESS

They missed their quarter badly, and he doesn't expect the CEO to repeat that. Shares have fallen so low that you can step into this.

BUY

They missed a little on free cash flow, but dividend pays around 8%. Capex is inching higher and the street is watching this, wants more drilling. You don't buy an energy stock because you expect oil to surpass $100.

BUY

Natural gas prices are too low and will eventually rise.

DON'T BUY
Nat gas. His choice would be the Canadian market. He owns TOU, advantageous for Canadian investors and better valuation.
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Sep 20/22, Down 7.3%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with DVN has triggered its stop at $60. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 6%, when combined with our previous buy recommendation.
BUY
The yield is too good to ignore. Shares have slid with the price of oil, but are worth buying as oil bottoms (which predicts at $65).
HOLD
How far does oil have to go before the dividend looks unattractive? At $70 a barrel for oil, you will need to rethink things. He saw the bottom in oil at $72-73 when the price held. He'd hold onto Devon. Likes it very much.
BUY
She's bullish oil. Devon trades at 7x PE and pays nearly a 8% dividend.
DON'T BUY
Model price of $119.81, upside of 77%. Oils have done very well. Going forward, bearish on commodity producers. He can't recommend it until we see where we're going with the economy, recession, currencies, etc.