11 Best Undervalued Energy Stocks to Invest in Now

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9. Devon Energy Corp. (NYSE:DVN)

Forward P/E Ratio as of April 10: 6.85

Number of Hedge Fund Holders: 55

Devon Energy Corp. (NYSE:DVN) explores, develops, and produces oil, natural gas, and natural gas liquids. It operates in the Delaware Basin located in southeast New Mexico and west Texas, Eagle Ford located in North America, Anadarko Basin located in western Oklahoma, Williston Basin located in North Dakota, and Powder River Basin located in Wyoming.

The company is enhancing its Eagle Ford position to maximize returns and drive growth. It recently finalized an agreement with BPX to dissolve its partnership in the Blackhawk field, which consolidates the company’s control over ~46,000 net acres in DeWitt County. The Eagle Ford asset holds about 550 of the company’s 700 remaining undrilled locations.

The venture was dissolved because of the anticipated reduction in D&C costs by over $2 million per well. Devon Energy Corp.’s (NYSE:DVN) Q4 2024 production outperformance was also driven by the timing and productivity of its Eagle Ford wells. The 2025 outlook emphasizes Eagle Ford’s importance, with a projected production of 383,000 BOE per day, while the overall company target for the year stands at 815,000 BOE per day.

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