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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 0.51
DVN's Cash to Debt is ranked higher than
73% of the 857 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.73 vs. DVN: 0.51 )
DVN' s 10-Year Cash to Debt Range
Min: 0.03   Max: 1.18
Current: 0.51

0.03
1.18
Equity to Asset 0.48
DVN's Equity to Asset is ranked higher than
72% of the 873 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.55 vs. DVN: 0.48 )
DVN' s 10-Year Equity to Asset Range
Min: 0.25   Max: 0.63
Current: 0.48

0.25
0.63
Interest Coverage 1.49
DVN's Interest Coverage is ranked higher than
56% of the 568 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 15.61 vs. DVN: 1.49 )
DVN' s 10-Year Interest Coverage Range
Min: 0.4   Max: 12.19
Current: 1.49

0.4
12.19
F-Score: 5
Z-Score: 1.50
M-Score: -3.07
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 5.97
DVN's Operating margin (%) is ranked higher than
78% of the 884 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 5.97 vs. DVN: 5.97 )
DVN' s 10-Year Operating margin (%) Range
Min: -56.47   Max: 47.94
Current: 5.97

-56.47
47.94
Net-margin (%) -0.19
DVN's Net-margin (%) is ranked higher than
77% of the 884 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 2.79 vs. DVN: -0.19 )
DVN' s 10-Year Net-margin (%) Range
Min: -66.36   Max: 45.77
Current: -0.19

-66.36
45.77
ROE (%) -0.10
DVN's ROE (%) is ranked higher than
78% of the 954 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: -0.51 vs. DVN: -0.10 )
DVN' s 10-Year ROE (%) Range
Min: -50.29   Max: 23.63
Current: -0.1

-50.29
23.63
ROA (%) -0.05
DVN's ROA (%) is ranked higher than
79% of the 992 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: -0.72 vs. DVN: -0.05 )
DVN' s 10-Year ROA (%) Range
Min: -24.02   Max: 13.82
Current: -0.05

-24.02
13.82
ROC (Joel Greenblatt) (%) 2.18
DVN's ROC (Joel Greenblatt) (%) is ranked higher than
81% of the 978 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: -0.65 vs. DVN: 2.18 )
DVN' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -27.78   Max: 25.42
Current: 2.18

-27.78
25.42
Revenue Growth (%) 4.30
DVN's Revenue Growth (%) is ranked higher than
73% of the 661 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 11.20 vs. DVN: 4.30 )
DVN' s 10-Year Revenue Growth (%) Range
Min: -6.1   Max: 30.4
Current: 4.3

-6.1
30.4
EBITDA Growth (%) -14.70
DVN's EBITDA Growth (%) is ranked higher than
70% of the 606 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 4.90 vs. DVN: -14.70 )
DVN' s 10-Year EBITDA Growth (%) Range
Min: -17.3   Max: 44.2
Current: -14.7

-17.3
44.2
» DVN's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2013

DVN Guru Trades in Q2 2013

Jim Simons 358,100 sh (New)
Alan Fournier 260,000 sh (New)
Ruane Cunniff 4,745 sh (New)
Paul Tudor Jones 5,900 sh (New)
Ray Dalio 53,200 sh (+332.52%)
Steven Cohen 83,278 sh (+288.84%)
Bill Nygren 3,765,000 sh (+34.22%)
Tweedy Browne Global Value 1,258,435 sh (+27.91%)
Arnold Schneider 254,508 sh (+19.11%)
Tweedy Browne 4,236,700 sh (+13.23%)
Charles de Vaulx 4,088,040 sh (+10.62%)
Martin Whitman 2,225,889 sh (+1.14%)
Chuck Royce Sold Out
Louis Moore Bacon Sold Out
Third Avenue Management 3,883,863 sh (-0.19%)
Jean-Marie Eveillard 7,799,865 sh (-2.05%)
Richard Snow 58,807 sh (-5.84%)
Mario Gabelli 204,500 sh (-12.12%)
David Dreman 50,304 sh (-13.52%)
Diamond Hill Capital 2,171,546 sh (-30.16%)
T Boone Pickens 47,166 sh (-61.43%)
Jeremy Grantham 12,600 sh (-73.97%)
Chris Davis 1,056,575 sh (-80.17%)
» More
Q3 2013

DVN Guru Trades in Q3 2013

Louis Moore Bacon 25,000 sh (New)
Pioneer Investments 4,021 sh (New)
Steven Cohen 1,869,173 sh (+2144.5%)
Jim Simons 646,100 sh (+80.42%)
Alan Fournier 385,000 sh (+48.08%)
Ray Dalio 70,838 sh (+33.15%)
Jeremy Grantham 14,400 sh (+14.29%)
Richard Snow 67,120 sh (+14.14%)
Paul Tudor Jones 6,600 sh (+11.86%)
Arnold Schneider 258,068 sh (+1.4%)
Jean-Marie Eveillard 7,908,819 sh (+1.4%)
David Dreman 50,340 sh (+0.07%)
Mario Gabelli 204,600 sh (+0.05%)
Charles de Vaulx 4,088,040 sh (unchged)
Tweedy Browne Global Value 1,258,435 sh (unchged)
Ruane Cunniff 4,745 sh (unchged)
Martin Whitman 2,225,889 sh (unchged)
T Boone Pickens Sold Out
Tweedy Browne 4,229,160 sh (-0.18%)
Third Avenue Management 3,720,330 sh (-4.21%)
Diamond Hill Capital 1,852,663 sh (-14.68%)
Bill Nygren 3,202,000 sh (-14.95%)
Chris Davis 210,620 sh (-80.07%)
» More
Q4 2013

DVN Guru Trades in Q4 2013

Ken Fisher 3,419 sh (New)
Ray Dalio 259,138 sh (+265.82%)
Paul Tudor Jones 9,000 sh (+36.36%)
Jeremy Grantham 18,000 sh (+25%)
Alan Fournier 449,000 sh (+16.62%)
Richard Snow 70,024 sh (+4.33%)
Jean-Marie Eveillard 7,943,119 sh (+0.43%)
Charles de Vaulx 4,097,287 sh (+0.23%)
Tweedy Browne 4,235,655 sh (+0.15%)
Tweedy Browne Global Value 1,258,435 sh (unchged)
Ruane Cunniff 4,745 sh (unchged)
Bill Nygren 3,202,000 sh (unchged)
Louis Moore Bacon Sold Out
Diamond Hill Capital 1,838,654 sh (-0.76%)
Mario Gabelli 200,950 sh (-1.78%)
Chris Davis 191,632 sh (-9.02%)
Pioneer Investments 3,614 sh (-10.12%)
Third Avenue Management 3,115,295 sh (-16.26%)
Steven Cohen 1,378,355 sh (-26.26%)
Arnold Schneider 177,471 sh (-31.23%)
David Dreman 26,159 sh (-48.04%)
Jim Simons 11,300 sh (-98.25%)
Martin Whitman 1,705,889 sh (-23.36%)
» More
2014

DVN Guru Trades in 2014

Martin Whitman 1,650,606 sh (-3.24%)
» More
» Details

Insider Trades

Latest Guru Trades with DVN

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Martin Whitman 2014-01-31 Reduce -3.24%0.15%$58.67 - $64.46 $ 68.6813%1650606
David Dreman 2013-12-31 Reduce -48.04%0.12%$57.97 - $65.52 $ 68.6812%26159
Ray Dalio 2013-12-31 Add 265.82%0.09%$57.97 - $65.52 $ 68.6812%259138
Martin Whitman 2013-10-31 Reduce -23.36%1.24%$55.8 - $65.52 $ 68.6816%1705889
Ray Dalio 2013-09-30 Add 33.15%0.01%$53.05 - $59.82 $ 68.6820%70838
Tweedy Browne 2013-06-30 Add 13.23%0.64%$51.44 - $60.17 $ 68.6823%4236700
Ray Dalio 2013-06-30 Add 332.52%0.02%$51.44 - $60.17 $ 68.6823%53200
Ruane Cunniff 2013-06-30 New Buy$51.44 - $60.17 $ 68.6823%4745
Jean-Marie Eveillard 2013-03-31 Add 49.5%0.5%$52.04 - $61.48 $ 68.6823%7963435
Mario Gabelli 2013-03-31 Add 29.21%0.02%$52.04 - $61.48 $ 68.6823%232700
Ray Dalio 2013-03-31 New Buy0.01%$52.04 - $61.48 $ 68.6823%12300
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Devon Energy Corp

Third Avenue Management Comments on Devon Energy Corp. - Oct 02, 2012

During the most recent quarter, the Fund exited its small position in Cenovus Common, allocating the capital to Devon Common (DVN), which appears to be much more attractively valued. The Fund initiated its position in Devon Common in January 2012, and the investment has been discussed in each of the last two shareholder letters. Devon's common stock price has been falling recently, owing primarily to weakness in commodity prices. In Devon's recently reported second quarter, oil, natural gas and natural gas liquids prices fell 19%, 54% and 26%, respectively, compared to a year ago. Nevertheless, the company reported a profitable and cash flow positive quarter (including proceeds from the closing of its previously announced joint venture with Sinopec). The company also announced a new $1.4 billion joint venture with Sumitomo Corporation, in which Sumitomo will pay $340 million in cash upon closing and fund 70% of Devon's future capital requirements for a 30% interest in 650,000 acres (no proved reserves) in two oil shale developments in Texas. Devon will continue to operate the properties and retain a 70% ownership interest. The transaction appears to be very attractive for Devon, as Sumitomo is effectively paying up for Devon's expertise by funding most of the capital.

Despite the pressure from falling commodity prices, Devon continues to have a very strong financial position, with $7 billion of cash compared to $10.6 billion of debt. Net debt totals only 14% of capital and $0.20 per thousand cubic feet equivalent ("mcfe") of proved reserves. Devon added to its hedges during the quarter and now has 65% of its gas production hedged for the rest of the year at $3.76 per mcfe (versus the current price of about $3) and 85% of its oil hedged at $97 (versus the current price of about $90). The valuation seems to be very compelling at about $9 per barrel of oil equivalent ("BOE") of proved reserves. In 2009 and 2010, Devon exited its less attractive Gulf of Mexico and international operations at a price of about $45 per barrel of proved reserves. More recently, Nexen, a Canadian E&P company, agreed to be sold to CNOOC for about $19 per BOE of proved reserves. Although Nexen's reserves are more heavily weighted to oil, Devon's assets carry less development risk as evidenced by its much lower percentage of proved undeveloped ("PUD") reserves (26% versus 53%).

From Third Avenue's third-quarter letter, by Ian Lapey, portfolio manager.

Check out Third Avenue Management latest stock trades

Bill Nygren's Oakmark Comments on Devon Energy - Jul 10, 2012

From Oakmark's second-quarter 2012 letter:

Devon Energy (DVN) is another exploration and production company, the stock of which has suffered because of declining commodity prices. We find it interesting that the financial press often characterizes Devon as a natural gas “play,” even though most of the company’s revenues come from liquids. Over the past three years, the stock has declined in price despite Devon’s significant growth in proved and probable reserves, as well as material debt reduction. Devon’s management understands capital allocation to be a paramount responsibility and has demonstrated this through savvy asset sales and purchases, and by accessing foreign capital through joint ventures.
Check out Bill Nygren latest stock trades

Bill Nygren Comments on Devon Energy - Jul 10, 2012

From Bill Nygren's second-quarter letter:

Devon Energy (DVN-$58)
Devon (DVN) is a North American oil and natural gas exploration and production company. The stock has been a poor performer, down from a high of $94 last year and an all-time high of $127 in 2008. With nearly 60% of its reserves in natural gas, Devon is widely perceived to be a gas company, and its stock price has traded down with natural gas prices. However, 80% of Devon’s revenues and over 80% of our business value estimate stem from the company’s oil and liquids business. Based on our estimates, the stock is now trading at just over half of its 2013 asset value. And we are not assuming any oil price recovery in our numbers. An additional reason we are attracted to Devon is the way management allocates capital. It seems that most oil and gas managements have a “bigger is better” mentality. Devon instead focuses on per-share value. In the past two years, Devon has used excess cash to reduce its share base by 10%. Selling at less than 10x expected earnings, at half of estimated asset value, and with a history of repurchasing its shares, we are pleased to add Devon to our portfolio.
Check out Bill Nygren latest stock trades

Top Ranked Articles about Devon Energy Corp

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The portfolio of T. Boone Pickens, BP Capital, currently lists 39 stocks, 20 of them new, with a total value of $102 million with a quarter-over-quarter turnover of 47%. Read more...

Ratios

vs
industry
vs
history
P/B 1.30
DVN's P/B is ranked higher than
73% of the 941 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 1.50 vs. DVN: 1.30 )
DVN' s 10-Year P/B Range
Min: 0.96   Max: 2.41
Current: 1.3

0.96
2.41
P/S 2.68
DVN's P/S is ranked higher than
67% of the 892 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 3.50 vs. DVN: 2.68 )
DVN' s 10-Year P/S Range
Min: 1.37   Max: 4.6
Current: 2.68

1.37
4.6
EV-to-EBIT 31.30
DVN's EV-to-EBIT is ranked lower than
58% of the 639 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 17.12 vs. DVN: 31.30 )
DVN' s 10-Year EV-to-EBIT Range
Min: 3.6   Max: 281.1
Current: 31.3

3.6
281.1
Shiller P/E 43.10
DVN's Shiller P/E is ranked higher than
51% of the 321 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 24.56 vs. DVN: 43.10 )
DVN' s 10-Year Shiller P/E Range
Min: 8.42   Max: 43.1
Current: 43.1

8.42
43.1

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.28
DVN's Dividend Yield is ranked lower than
77% of the 284 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 3.36 vs. DVN: 1.28 )
DVN' s 10-Year Dividend Yield Range
Min: 0.34   Max: 1.6
Current: 1.28

0.34
1.6
Dividend growth (3y) 10.40
DVN's Dividend growth (3y) is ranked higher than
87% of the 167 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 3.60 vs. DVN: 10.40 )
DVN' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 65.1
Current: 10.4

0
65.1
Yield on cost (5-Year) 1.95
DVN's Yield on cost (5-Year) is ranked lower than
61% of the 297 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 3.01 vs. DVN: 1.95 )
DVN' s 10-Year Yield on cost (5-Year) Range
Min: 0.51   Max: 2.41
Current: 1.95

0.51
2.41
Share Buyback Rate 2.70
DVN's Share Buyback Rate is ranked higher than
98% of the 792 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: -7.80 vs. DVN: 2.70 )
DVN' s 10-Year Share Buyback Rate Range
Min: 3.4   Max: -47.1
Current: 2.7

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 1.90
DVN's Price/Tangible Book is ranked higher than
59% of the 919 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 1.60 vs. DVN: 1.90 )
DVN' s 10-Year Price/Tangible Book Range
Min: 1.29   Max: 6.56
Current: 1.9

1.29
6.56
Price/DCF (Projected) 4.70
DVN's Price/DCF (Projected) is ranked lower than
62% of the 263 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 1.70 vs. DVN: 4.70 )
DVN' s 10-Year Price/DCF (Projected) Range
Min: 1.34   Max: 7.86
Current: 4.7

1.34
7.86
Price/Median PS Value 1.00
DVN's Price/Median PS Value is ranked higher than
55% of the 821 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.90 vs. DVN: 1.00 )
DVN' s 10-Year Price/Median PS Value Range
Min: 0.64   Max: 1.88
Current: 1

0.64
1.88
Earnings Yield (Greenblatt) 3.20
DVN's Earnings Yield (Greenblatt) is ranked higher than
51% of the 656 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 5.70 vs. DVN: 3.20 )
DVN' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.4   Max: 27.4
Current: 3.2

0.4
27.4
Forward Rate of Return (Yacktman) -3.90
DVN's Forward Rate of Return (Yacktman) is ranked higher than
85% of the 753 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: -12.50 vs. DVN: -3.90 )
DVN' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -21.3   Max: 47.5
Current: -3.9

-21.3
47.5

Business Description

Industry: Oil & Gas - E&P » Oil & Gas E&P
Compare:OJSCY, APC, APA, HRTPY, SGTZY » details
Traded in other countries:DY6.Germany
Devon Energy Corporation is a Delaware corporation formed in 1971. It is an independent energy company engaged mainly in the exploration, development and production of oil, natural gas and NGLs. The Company's operations are concentrated in various North American onshore areas in the U.S. and Canada. It also own natural gas pipelines, plants and treatment facilities in many of its producing areas, making it one of North America's processors of natural gas. Its marketing and midstream revenues are mainly generated by: selling NGLs that are either extracted from the gas streams processed by its plants or purchased from third parties for marketing, and selling or gathering gas that moves through its transport pipelines and unrelated third-party pipelines. The Company's marketing and midstream costs and expenses are mainly incurred from: purchasing the gas streams entering its transport pipelines and plants; purchasing fuel needed to operate its plants, compressors and related pipeline facilities; purchasing third-party NGLs; operating its plants, gathering systems and related facilities; and transporting products on unrelated third-party pipelines. The Company's oil and gas operations are subject to various federal, state, provincial, tribal and local laws and regulations. Its operations also are subject to conservation regulations, including the regulation of the size of drilling and spacing units or proration units; the number of wells that may be drilled in a unit; the rate of production allowable from oil and gas wells; and the unitization or pooling of oil and gas properties.

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