Devon Energy Corp (NYSE:DVN) shares are climbing Wednesday after the company issued fresh guidance for 2026 following the completion of its merger with Coterra Energy. Here’s what you need to know.
- Devon Energy stock is among today’s top performers. What’s fueling DVN momentum?
The combined business expects to produce about 1.38 million barrels of oil equivalent per day in 2026, with oil output projected at 500,000 barrels per day.
The company also outlined a full year capital plan of roughly $4.9 billion. More than 60% of that spending will be directed toward the Permian Basin. Devon plans to run 31 rigs and 10 completion crews next year and expects to bring 460 to 480 net wells online. Management framed the plan as focused on free cash flow generation rather than volume growth.
Shareholder Returns And Synergy Targets Add Support
Devon reiterated its goal of returning up to 70% of free cash flow to shareholders. The plan includes a quarterly dividend of 32 cents per share and an $8 billion share repurchase program. The company also expects to retire $1.25 billion of debt in 2026 to maintain an investment grade balance sheet.
Synergy capture remains a key part of the merger story. Devon expects to achieve $600 million in synergies in 2027 and is on track to reach $1 billion in annual pretax synergies by the end of that year. Management highlighted progress in capital efficiency, operating margins and corporate cost structure.
Evercore Upgrade Adds Another Tailwind
Devon also got a lift from an analyst call. Evercore ISI analyst Stephen Richardson upgraded the stock from In Line to Outperform and set a $54 price target. The firm said Devon’s updated guidance showed better capital efficiency than expected, helped by lower spending in the Eagle Ford, according to Investing.com.
Evercore also pointed to clearer visibility on the company’s portfolio review, which aims to concentrate assets around the Delaware Basin. The firm said the synergy timeline and cash return framework give the stock a more credible long-term setup. Evercore noted that potential asset sales are not included in its base case but could add further upside.
DVN Shares Are Trending Higher
DVN Price Action: Devon shares were up 5.90% at $46.68 at the time of publication on Wednesday, according to Benzinga Pro.
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