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OKLAHOMA CITY - Devon Energy Corp. (NYSE: DVN), currently trading at $34.25 and considered undervalued according to InvestingPro analysis, today announced the upcoming retirement of board member John Krenicki Jr., effective at the end of his current term. Krenicki, who has been a part of the board since 2018, will not seek re-election at the company’s annual stockholders’ meeting scheduled for June 4, 2025.
During his tenure, Krenicki played a significant role in Devon’s strategic decisions, including the noteworthy merger with WPX Energy (NYSE:WPX) in 2021. The company credits him with providing strategic guidance and valuable insights throughout his service, contributing to Devon’s current market capitalization of $22.21 billion.
John Bethancourt, Devon’s Chairman, expressed gratitude for Krenicki’s contributions, stating, "John Krenicki has served with distinction on Devon’s board, leaving a mark through his dedication." Bethancourt also wished Krenicki success in his future endeavors, particularly in his role at CD&R, a private equity firm where he serves as Vice Chairman.
Devon Energy, a prominent oil and gas producer in the United States with a P/E ratio of 7.59, is recognized for its diversified multi-basin portfolio, with a significant position in the Delaware Basin. The company prides itself on a business model that prioritizes strong returns, free cash flow, and capital return to shareholders, including a remarkable 33-year streak of consecutive dividend payments. InvestingPro analysis reveals several more key metrics and insights available to subscribers, including detailed financial health scores and growth projections.
The announcement is based on a press release statement from Devon Energy Corporation (NYSE:DVN), which maintains a "GOOD" financial health rating according to comprehensive InvestingPro analysis.
In other recent news, Devon Energy reported fourth-quarter 2024 earnings that exceeded analyst expectations, with adjusted earnings per share at $1.16, surpassing the consensus estimate of $0.98. Revenue for the quarter reached $4.4 billion, above the projected $4.17 billion. The company achieved record oil production of 398,000 barrels per day, contributing to a total production average of 848,000 barrels of oil equivalent per day, marking a 16% increase from the previous quarter. Devon Energy also announced a 9% increase in its fixed dividend to $0.24 per share and returned $444 million to shareholders through dividends and share repurchases.
In terms of strategic developments, Devon Energy plans to allocate up to 70% of its free cash flow to shareholder returns, with a focus on share buybacks and dividends. The company has set a capital expenditure budget between $3.8 billion and $4.0 billion for 2025, with anticipated production ranging from 805,000 to 825,000 barrels of oil equivalent per day. Analyst firms such as Bernstein, JPMorgan, and Mizuho (NYSE:MFG) have adjusted their price targets for Devon Energy, with Bernstein and JPMorgan setting a target of $48 and Mizuho raising it to $49, citing the company’s robust financial strategy and operational efficiencies.
The recent leadership transition, with COO Clay Gaspar succeeding CEO Rick Muncrief, aligns with Devon Energy’s continued focus on capital efficiency and organic growth. Devon Energy’s integration of Grayson Mills and the conclusion of its partnership with BPX in the Eagle Ford (NYSE:F) region are expected to yield further synergies and cost savings. These developments reflect Devon Energy’s strategic focus on enhancing shareholder value and maintaining a strong financial position.
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