10 Best Affordable Stocks To Buy Right Now

8. Devon Energy Corporation (NYSE:DVN)

Forward P/E Ratio as of September 16: 6.87

Number of Hedge Fund Holders: 52

Devon Energy Corporation (NYSE: DVN) is a leading company in the U.S. energy sector, specializing in the exploration, development, and production of oil, natural gas, and natural gas liquids. The company’s strategic investment in its core Delaware Basin assets has boosted productivity, leading the company to raise its production volume estimates twice this year, reflecting a 5% increase over its initial guidance. Additionally, the company has joined the recent wave of industry acquisitions with a $5 billion deal to acquire Grayson Mill’s Williston Basin assets, funded through a mix of cash and stock. Management expects this acquisition to boost oil equivalent production by 15% and generate a similar increase in free cash flow. On that front, Rick Muncrief, President and CEO of the oil giant, said the following during the company’s Q2 2024 Earnings Call:

“The improved outlook is driven entirely by our legacy portfolio. We now expect to produce more than 680,000 BOE per day in 2024, which represents a 5% increase compared to our initial budget expectations heading into the year. In addition, our outlook was further strengthened by the Grayson Mill acquisition in Williston Basin. These assets are an excellent addition to our portfolio, fitting perfectly within our broader strategic framework to accumulate resource and grow oil-weighted production in the best parts of the top U.S. shale plays. Upon completion of the transaction, Devon will be one of the largest oil producers in the U.S. with average daily rates estimated at around 375,000 barrels of oil per day. This transaction nearly triples our production and expands our inventory in the Williston Basin.”

RBC Capital reiterated its “Sector Perform” rating and maintained a $57 price target for Devon Energy Corporation (NYSE:DVN). The review pointed to a slight improvement in Devon’s production outlook, driven by strong well performance and enhanced operational efficiencies. However, the company’s production is expected to slow in the second half of 2024 due to an aggressive drilling schedule earlier in the year and a reduced working interest in the Permian Basin. RBC Capital also indicated that Devon Energy Corporation (NYSE:DVN) may explore additional acquisition opportunities going forward.

Devon Energy Corporation’s Q2 2024 earnings report showcased strong results, with earnings per share of $1.56 and revenue of $4.6 billion, reflecting an 8% year-over-year increase. The company also enhanced shareholder returns, issuing a $0.72 per share variable dividend and executing a significant share repurchase program, buying back approximately $500 million worth of shares during the quarter.