JPMorgan analysts shared their take on Devon Energy Inc.
JPMorgan on DVN: For Devon Energy, analysts noted that the company delivered one of the strongest earnings prints of the season, with a 3% oil production beat leading to a 6% increase in cash flow. The company's 2025 guidance was better than expected, with a more capital-efficient plan that increases oil output while cutting spending by 5%.
According to the analysts, strong performances in the Eagle Ford and Rockies assets, along with the successful integration of the Grayson Mill acquisition, contributed to the earnings beat. Devon also raised its fixed dividend by 9% and repurchased $301 million in stock during the quarter, with plans to return up to 70% of its free cash flow to investors in 2025.
JPMorgan on OXY: Occidental Petroleum's stock surged 4.4% post-earnings despite a weaker-than-expected first-quarter 2025 outlook and $1.1 billion in special charges, including impairments and environmental reserves.
JPMorgan analysts suggested the stock's strength was driven by a sizable fourth-quarter beat, accelerated debt reduction, and a 9% dividend increase. Occidental generated $1.35 billion in free cash flow in the quarter, using $500 million to reduce debt and achieving its $4.5 billion deleveraging target seven months ahead of schedule. The company also announced $1.2 billion in non-core asset sales, with plans to use the proceeds for 2025 debt maturities.
Price Action: Shares of Devon Energy were up 2.24% at $38.41, while Occidental Petroleum gained 2.34% to trade at $52.18 as of Tuesday afternoon.
