This report is an updated version of the report published on 1 December 2025 at 12:53 AM PDT.

Devon Energy Corporation (NYSE: DVN)

Devon Energy Corporation is an oil and gas producer in the United States with a multi-basin portfolio. The Company is primarily engaged in the exploration, development and production of oil, natural gas and natural gas liquids (NGLs). Its oil and gas properties include Delaware Basin, Eagle Ford, Anadarko Basin, Williston Basin and Powder River Basin.   

Recommendation Rationale – SELL at USD 37.06 

• Trading Near Resistance Level: DVN’s share price surpassed its R1 level recommended on 30 April 2025, the 14-day RSI is now around 68.59, approaching overbought territory. Therefore, share price can face resistance at the current levels.

• Elevated Expense Base: Total expenses rose to USD 3,419 million in Q3 2025 from USD 2,960 million in Q3 2024, reflecting increased cost intensity.
• Reduced Profitability: Net earnings declined to USD 693 million in Q3 2025 from USD 825 million in Q3 2024, indicating softer bottom-line performance.
• Market Risk: DVN’s performance is closely tied to oil and natural gas prices, making its financial performance sensitive to commodity price volatility. Prolonged price swings can influence margins, and capital allocation decisions.

DVN’s Daily Price Chart

Daily Technical Chart, Data Source: REFINITV 

Valuation Methodology: Price/Earnings Approach (FY December'26E) (Illustrative)

The stock may trade at a slight premium to its peers given the growth in oil, gas and NGL sales, improved liquidity, production reaching the upper end of guidance, and continued operational gains from well performance in the Rockies and Eagle Ford. For conducting the valuation, the following peers have been considered: Venture Global Inc (NYSE: VG), Ovintiv Inc (NYSE: OVV), and Matador Resources Co (NYSE: MTDR).

Given the stock has crossed to its R1 level, recent rally in the share price, and risks associated, it is prudent to sell the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the closing market price of USD 37.06, as of 28 November 2025.  

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 28 November 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Dividend Yield may vary as per the stock price movement.

Note 5: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.