Devon Energy’s disciplined cash-return business model also generated significant cash flow, allowing it to boost its dividend and buy back $300 million of its shares in the latest quarter.
A recent $5 billion acquisition expands its position in the oil-rich Williston Basin, adding high-margin production expected to reach approximately 100,000 barrels of oil equivalent per day in 2025.
With its enhanced scale, operational efficiency, and disciplined financial approach, the firm is well-positioned to deliver sustainable value through commodity cycles.
DEVON ENERGY CORP. (Symbol DVN on New York; www.devonenergy.com) is a leading producer of oil and natural gas from wells in Wyoming, Texas, Oklahoma and New Mexico.
Devon continues to use acquisitions to expand its operations in its core areas. The company has now completed the acquisition of Grayson Mill Energy for $5 billion. That firm is an oil-and-gas producer in the Williston Basin, in western North Dakota and eastern Montana.
Oklahoma City-based Devon paid $3.25 billion in cash and $1.75 billion in stock to acquire Grayson Mill.
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Devon reports that the acquisition added immediately to its earnings and cash flow as it expands its position in the Williston Basin by more than 307,000 acres. Production from the acquired acreage is expected to hit about 100,000 barrels of oil a day in 2025. That will boost Devon’s output to an average of 765,000 barrels of oil equivalent per day from 664,000 barrels.
Energy Stocks: Devon Energy’s board approves 9.1% increase in quarterly fixed dividend
Excluding one-time items, in the three months ended December 31, 2024, Devon reported earnings of $756 million, or $1.16 a share.
With the March 31, 2025, payment, the company raised its fixed quarterly dividend by 9.1%, to $0.24 from $0.22. That gives the shares a 3.3% yield.
At the same time, Devon aims to pay out as much as 50% of its excess free cash flow in the form of dividends—on top of its fixed dividend.
Devon continues to repurchase shares. In the latest quarter, the company bought back $300 million of its common stock. In 2024, it repurchased $1.1 billion of its shares.
Recommendation in Power Growth Investor: Devon Energy Corp. is a buy.
