10 Stocks That Have Jim Cramer’s Attention

6. Devon Energy Corporation (NYSE:DVN)

Number of Hedge Fund Investors: 52

Jim Cramer recently shared his thoughts on Devon Energy Corporation (NYSE:DVN), highlighting his positive view on the company’s strategic acquisitions. However, he cautioned that with natural gas prices low and oil prices struggling to stay above $60, investors should temper their expectations about the stock’s short-term performance.

“I like Devon Energy, especially considering its strategic acquisitions. However, with natural gas prices low and oil prices struggling to stay above $60, don’t get overly excited about the stock’s immediate prospects.”

Devon Energy Corporation (NYSE:DVN), a leading U.S. independent oil and gas producer, is poised for continued growth thanks to its significant operations in major shale basins like the Delaware Basin, Eagle Ford, and Powder River Basin. The company’s Q2 2024 earnings report demonstrated strong performance, with earnings per share (EPS) of $1.56 and revenue of $4.6 billion, an 8% increase from the previous year. This growth was driven by a rise in production volumes to 325,000 barrels per day and favorable commodity prices. Devon Energy Corporation (NYSE:DVN)’s focus on efficient operations and high-margin assets has enabled it to maintain robust cash flow despite fluctuating oil prices.

Recent developments further support a positive outlook for Devon Energy Corporation (NYSE:DVN). Devon Energy Corporation (NYSE:DVN) has increased shareholder returns with a $0.72 per share variable dividend and a substantial share repurchase program, buying back about $500 million in shares during the quarter. These actions highlight Devon Energy Corporation (NYSE:DVN)’s strong financial health and confidence in its future. Additionally, Devon Energy Corporation (NYSE:DVN)’s disciplined approach to capital allocation—focusing on high-return projects and maintaining a conservative spending strategy—has resulted in a solid balance sheet with low net debt-to-EBITDA ratios.