Devon Energy Corporation, an independent energy company, engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. The company operates in Delaware Basin located in southeast New Mexico and west Texas, Eagle Ford located in North America, Anadarko Basin located in western Oklahoma, Williston Basin located in North Dakota, and Powder River Basin located in Wyoming. Devon Energy Corporation was founded in 1971 and is headquartered in Houston, Texas.
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ExxonMobil and peers beat Q2 revenue estimates by 9.7%
Diversified upstream E&P stocks delivered a strong second quarter, with the five companies tracked beating analysts' consensus revenue estimates by 9.7% as a group. ExxonMobil reported revenues of $116 billion, up 42.3% year over year and 6.8% above expectations, while Occidental Petroleum posted the biggest beat at 15.3% with revenues of $8.33 billion, up 57.1%. Chevron's revenues of $70.06 billion rose 56.3% and beat by 6.2%, Devon Energy's $6.89 billion was up 67.4% and beat by 10.3%, and ConocoPhillips' $19.52 billion rose 32.4% and beat by 9.6%. Share prices for the group have risen 10.9% on average since the latest earnings results.
Diamondback Energy Joins Solitude Pipeline Final Investment Decision
Diamondback Energy has joined WhiteWater, Devon Energy, MPLX, and Western Midstream Partners in a positive Final Investment Decision to build the Solitude Pipeline System, two 48-inch natural gas pipelines from the Permian Basin to Katy, Texas, targeting initial capacity of about 2.25 billion cubic feet per day in the second half of 2029. Diamondback holds a 7.5% stake in the joint venture, backed by long-term transportation agreements with predominantly investment-grade shippers. The move broadens Diamondback's footprint beyond upstream production into long-haul gas infrastructure, though the long lead time to 2029 means it does not materially change the near-term focus on managing costs and preserving free cash flow sensitivity to oil and gas prices. The company's August 2026 guidance update raised full-year production expectations and confirmed robust second-quarter volumes, giving it more optionality in moving and marketing its gas. Analysts see the infrastructure investment supporting views of revenue reaching about US$17.7 billion and earnings near US$8.0 billion by 2029, far more bullish than the baseline projection of $16.5 billion revenue and $4.9 billion earnings.
WhiteWater and partners approve FID for Solitude Pipeline System
WhiteWater and its joint venture partners Devon Energy, Diamondback Energy, Western Midstream Partners and MPLX have reached a final investment decision to construct the Solitude Pipeline System in the US. The project will feature two 48-inch natural gas pipelines transporting supplies from the Permian Basin to a hub in Katy, Texas, near the Gulf coast, with initial capacity of approximately 2.25 billion cubic feet per day expected in late 2029 and an additional 2.25 billion cubic feet per day in 2030. WhiteWater holds a 50% stake in the joint venture, Devon Energy owns 25%, MPLX 10%, and Diamondback Energy and Western Midstream Partners each hold 7.5%. The system is supported by long-term transportation agreements with mainly investment-grade shippers, and Western Midstream Partners has taken firm capacity on the pipelines to enhance flow assurance for its Delaware Basin customers. Commissioning is subject to customary regulatory and other approvals, with service targeted to commence in the second half of 2029.
Devon Energy Stock Looks Below Fair Value As Q2 Profit Lands
Devon Energy stock appears undervalued relative to its fundamentals after the company reported a second-quarter 2026 profit of US$1.9 billion and raised its dividend. The shares trade at a price-to-earnings ratio of about 15.7 times, above the oil and gas industry average of 12.7 times but below the peer group average of 18.0 times and Simply Wall St's fair P/E estimate of 22.0 times. Broader valuation checks indicate the stock screens as undervalued in five of six tests, though capital spending plans may add execution risk if returns fall short of market expectations. Devon Energy has delivered a 119.8% total return over the past five years, while its 36.9% return over the last year lags behind peers.
Devon Energy raises fixed dividend 33% after Coterra deal, while Exxon extends 43-year hike streak
Devon Energy increased its quarterly fixed dividend by 33% to $0.32 per share in 2026 following the completion of its acquisition of Coterra, a move the board views as sustainable. The company also has a history of paying a variable dividend tied to financial results, which can boost income when oil prices are high but may shrink or disappear when prices fall, giving the stock a 2.4% yield. In contrast, ExxonMobil has raised its dividend annually for 43 consecutive years, most recently by 4%, and offers a 2.7% yield, with its integrated business model and strong balance sheet providing consistency through energy price cycles.
All 12 S&P 500 Energy stocks beat EPS estimates this week
All 12 S&P 500 energy companies that reported earnings this week beat Wall Street's EPS estimates, while nine topped revenue expectations and three missed. Occidental Petroleum posted EPS of $2.40, beating by $0.55, and revenue of $8.33 billion, exceeding forecasts by $1.08 billion. ConocoPhillips reported EPS of $3.24, a $0.30 beat, on revenue of $19.52 billion that missed estimates. Devon Energy delivered EPS of $1.57, beating by $0.16, with revenue of $7.42 billion surpassing expectations by $1.49 billion. ONEOK's EPS of $1.53 beat by $0.13 on revenue of $12.05 billion, a $3.10 billion beat, prompting raised full-year 2026 guidance. Phillips 66 posted EPS of $9.41, a $1.91 beat, on revenue of $52.04 billion, exceeding estimates by $8.00 billion. EOG Resources reported EPS of $5.07, beating by $0.10, with revenue of $8.62 billion topping expectations by $821.75 million. The sector's strong cash flows, disciplined spending, and shareholder returns continued to support performance, with the State Street Energy Select Sector SPDR ETF gaining 28.27% year-to-date, outpacing the broader S&P 500's 12.63% return.
Devon Energy Reports $7.4 Billion Revenue and $197 Million Buyback
Devon Energy Corporation reported second-quarter 2026 revenue of US$7,417 million and net income of US$1,911 million, with basic earnings per share from continuing operations of US$2.04. The company also completed a buyback of 4,300,000 shares for US$197 million as the first tranche of its US$8 billion share repurchase program. The strong quarterly results reinforce the investment narrative around execution on its enlarged post-merger footprint, though risks remain tied to volatile commodity prices and regulatory pressures. Analyst projections for 2029 revenue had been as low as about US$22.8 billion, making the quarter an upside surprise that may challenge pessimistic views on Devon's earnings power.
Devon Energy posts $1.9 billion second-quarter profit after Coterra merger
Devon Energy reported net earnings of $1.9 billion, or $2.03 per diluted share, for the second quarter of 2026, its first reporting period to include operations acquired through its merger with Coterra Energy. Core earnings totaled $1.5 billion, or $1.57 per diluted share, while operating cash flow reached $3.7 billion and adjusted free cash flow was $1.7 billion. Production averaged 1.359 million barrels of oil equivalent per day, near the top of guidance, with oil output of 503,000 barrels per day. The company returned approximately $1.06 billion through dividends, share repurchases and debt reduction, and increased its quarterly dividend by 33% to $0.32 per share. Devon also spent $2.6 billion in cash to acquire 16,300 net acres in New Mexico, adding an estimated 400 drilling locations in the Delaware Basin.
HXMX AI matches expert geoscientists in Williston Basin study with Devon Energy
Devon Energy and HXMX will present joint research at IMAGE 2026 showing that an automated interpretation platform can pick formation tops as reliably as expert geoscientists across a large Williston Basin dataset. The study, authored by Drew Kreman and Kevin Pelton of Devon Energy and Alan Lindsey of HXMX, benchmarks HXMX's automated formation-top picking against traditional manual correlation, with automated picks matching expert picks with strong accuracy across most intervals. It also introduces Triangulated Cross-Validation, a method that checks each automated pick against every other well in a set and reports consistency in feet, giving geoscientists a direct, quantitative measure of uncertainty. The presentation is scheduled for August 19, 2026, at 8:00 a.m. in Room 372A of the George R. Brown Convention Center in Houston.
Stocks Tumble as Chipmakers Plunge and Oil Spikes on Geopolitical Risks
U.S. stocks fell sharply, with the S&P 500 sliding to a one-month low and the Nasdaq 100 sinking to a three-month low, as chipmakers and AI infrastructure stocks sold off and crude oil prices surged more than 7%. The Philadelphia Semiconductor Index dropped over 3% to a two-and-a-half-month low, with Nebius Group down more than 9%, KLA Corp and Sandisk down more than 7%, and Applied Materials, NXP Semiconductors, and ARM Holdings down more than 5%. Crude oil jumped after the Islamic Revolutionary Guard Corps said it targeted a U.S. airbase in Jordan with ballistic missiles and claimed to have halted three tankers in the Strait of Hormuz, while the U.S. and Saudi Arabia launched a joint attack on Iran-aligned terrorists in Iraq. The Federal Reserve kept interest rates unchanged in a 9-3 decision, and markets awaited earnings from Microsoft and Meta Platforms after the close. The 10-year Treasury yield rose 4 basis points to 4.64%, and energy stocks gained, with Diamondback Energy up more than 4% and ConocoPhillips, APA Corp, Devon Energy, ExxonMobil, and Occidental Petroleum up more than 3%.
Devon Energy Stock Falls 1.16% While Broader Market Gains
Devon Energy shares closed at $42.66, down 1.16% from the previous session, underperforming the S&P 500 which rose 0.21%. The oil and gas exploration company is scheduled to report earnings on August 4, 2026, with analysts forecasting earnings per share of $1.3, a 54.76% increase from the same quarter last year, and revenue of $6.3 billion, up 47.02%. For the full year, the Zacks Consensus Estimates project earnings of $4.64 per share and revenue of $24.28 billion, representing year-over-year growth of 18.37% and 41.25%, respectively. Devon Energy currently holds a Zacks Rank of 3, or Hold, and trades at a forward price-to-earnings ratio of 9.31, a discount to the industry average of 9.84.
Micron, energy, and biotech stocks move premarket on chip debut, oil dip, and Forte buyout
Memory stocks rose broadly after Chinese chipmaker CXMT debuted on the Shanghai public market with its stock surging more than 466%, lifting U.S.-listed peers including Micron Technology which advanced 2.5%. Energy stocks followed oil prices lower after the U.S. and Iran agreed to pause attacks, with Chevron down 2.7%, ExxonMobil down 3.2%, and APA, Devon Energy, and Diamondback Energy each falling around 4%. Forte Biosciences rallied more than 39% on news it will be acquired by Netherlands-headquartered Argenx for $2.2 billion in cash, or $77 per share, a 40% premium to Friday's close. Baker Hughes gained nearly 2.2% after reporting better-than-expected second-quarter earnings and revenue, with the CEO citing favorable fundamentals and reaffirming full-year guidance. D-Wave Quantum rose more than 7% after announcing a partnership with AT&T to use its annealing quantum computers for AI, while IonQ gained nearly 4.5% and Rigetti Computing added 3.8%.
Global oil stocks tumble as crude prices retreat after U.S. halts Iran strikes
Shares in oil and gas producers across the U.S. and Europe fell sharply after the U.S. military halted two weeks of strikes on Iran, with Tehran signaling it would suspend its own attacks as long as the pause holds, easing fears of a broader Middle East escalation and dragging crude prices lower. In the U.S., Chevron and Exxon Mobil dropped about 2.5% each, ConocoPhillips slid 3.1%, Devon Energy fell 3%, Occidental Petroleum shed 3.7%, and Diamondback Energy lost 2.7%, while oilfield services companies SLB and Halliburton slipped 1.3% and 1.8% respectively. European names saw steeper declines, with the region's oil and gas index down about 2%, as BP fell 3.6%, Equinor lost 5.4%, Var Energi, Eni, and Maurel & Prom dropped more than 4% each, and TotalEnergies and OMV were down around 3% each. Brent crude futures tumbled 6.7% to $90.24 a barrel following the announcements. The pause came as diplomats sought to give peace talks space after a China-led push to revive stalled negotiations in Pakistan, though analysts cautioned that the path to a lasting peace remains uncertain with contentious issues including Iran's nuclear program and the Strait of Hormuz remaining closed under a U.S. blockade.
Devon Energy weighs $4 billion sale of Eagle Ford and Powder River assets
Devon Energy is exploring a sale of its Eagle Ford and Powder River shale assets that together could fetch more than $4 billion, Bloomberg reported. The company aims to announce a strategic review of the assets when it reports earnings in early August, though no final decision has been made. Devon has faced pressure from investors to streamline its portfolio and focus on its Permian Basin business following its $25 billion acquisition of Coterra Energy. Activist investor Kimmeridge Energy recently criticized the divestment program as too slow, and major shareholder Toms Capital is said to be considering all options to spur action.
US energy shares gain as Houthi tanker attacks push Brent to $100
U.S. energy shares rose in premarket trading on Thursday after Houthi attacks on two Saudi oil tankers pushed Brent crude briefly to $100 a barrel, intensifying Middle East tensions and heightening concerns over global oil supply disruptions. Brent crude futures rose as much as 6.3% to $100 per barrel for the first time since May 26, while U.S. West Texas Intermediate crude was up 5.2% at $91.30 per barrel. Shares of Exxon Mobil and Chevron rose 1.6% and 1.7%, respectively, and Diamondback Energy, Devon Energy, ConocoPhillips, and Occidental Petroleum were up between 2% and 2.5%. Refiners Valero Energy, Marathon Petroleum, and Phillips 66 also gained between 2.1% and 2.6%. UBS analyst Giovanni Staunovo said the production recovery process in the Middle East is expected to be slower than the market anticipates, keeping the oil market tight and prices supported.
Money Rotates from Megacap Tech into Financials and Energy, Lifting JPMorgan, Devon Energy, and Others
A market rotation out of megacap technology stocks and into financials and energy is accelerating, with the Nasdaq-100 shedding 3.28% over the past month while the Russell 2000 gained 1.2%. JPMorgan Chase reported second-quarter 2026 earnings per share of $7.70, beating estimates by 32.76%, and authorized a new $50 billion buyback. Devon Energy raised its quarterly dividend 31% to $0.315 per share after closing its all-stock merger with Coterra Energy, targeting $1.0 billion in annual pre-tax synergies by year-end 2027. Powell Industries saw new orders surge 97% year over year to $490 million, driven by data center and AI infrastructure demand. TJX Companies posted a 19% earnings beat on a 6% rise in comparable sales, while Robinhood reported net deposits of $17.7 billion and a 320% jump in event contracts revenue.
Devon Energy Shows Positive Earnings ESP Ahead of August 2026 Report
Devon Energy may be positioned to extend its earnings-beat streak, according to Zacks Investment Research. The company has surpassed consensus estimates in each of the last two quarters, with an average surprise of 2.62%. For the most recent quarter, Devon reported earnings of $1.04 per share versus the Zacks Consensus Estimate of $1.00, a 4.00% beat, while the prior quarter saw earnings of $0.82 per share against an estimate of $0.81. The stock currently carries a Zacks Rank of 3, or Hold, and a positive Earnings ESP of plus 1.50%, a combination that Zacks research indicates produces a positive earnings surprise nearly 70% of the time. Devon Energy's next earnings report is expected on August 4, 2026.
Devon Energy Stock Still Looks Undervalued Despite 102% Five-Year Return
Devon Energy stock has delivered a 102% total return over the past five years, yet current valuation checks suggest the shares remain cheap rather than fully pricing in that performance. The company trades at about 21.4 times earnings, above the oil and gas industry average of 13.3 times but below a peer group average of 54.8 times. A tailored benchmark factoring in Devon Energy's growth profile, margins, size, and risk implies a fair price-to-earnings ratio of about 28.5 times, indicating the stock is undervalued relative to that model. On Simply Wall St's broader checks, Devon Energy screens as undervalued in five of six areas, pointing to a company that still looks cheap across most standard valuation measures. The stock's next move may depend on whether the market continues to view its current valuation as a genuine discount or as fair compensation for commodity and execution risks.
Kimmeridge faults pace of Devon Energy’s asset sale efforts after Coterra deal
Kimmeridge Energy Management has criticized Devon Energy’s divestment program as moving too slowly following the driller’s $25 billion takeover of Coterra Energy. Managing director Mark Viviano said the board’s response has fallen well short of the urgency warranted by Devon’s persistent underperformance. Another activist, Toms Capital Investment Management, has also become increasingly impatient with the pace of management’s actions. Devon CEO Clay Gaspar recently told investors the company is moving quickly to evaluate its portfolio, calling it a months-long rather than a years-long exercise.
Devon Energy Receives Mixed Analyst Ratings and Price Target Adjustments
Devon Energy has received a series of analyst updates. On June 29, 2026, Morgan Stanley lowered its price target to $63 from $66 while maintaining an Overweight rating, citing declining oil prices after a U.S.-Iran memorandum of understanding. On June 24, Goldman Sachs reinstated coverage with a Buy rating and a $54 price target, highlighting the company's Delaware Basin optimization, expected $1.0 billion in run-rate merger synergies by 2027-end, and a capital return framework of up to 70% of free cash flow. Earlier, on June 15, Raymond James reduced its target to $66 from $72 but kept a Strong Buy rating, noting that portfolio rationalization could help narrow the valuation gap.
Devon Energy Finalizes Private Exchange Offers for Coterra Notes
Devon Energy Corporation announced the final results of its private exchange offers to swap outstanding notes issued by its subsidiary, Coterra Energy, for new Devon notes and cash. The offers, which concluded on June 23, saw high participation rates across several series of notes, with total tendered principal amounts ranging from 65% to nearly 98% per series. Settlement is scheduled for approximately June 25, and the new Devon notes will be issued as general unsecured obligations ranking equally with the company's existing unsecured and unsubordinated debt. This transaction consolidates various debt obligations under Devon's primary indenture, effectively refinancing a significant portion of Coterra's existing debt and streamlining the capital structure.
Devon Energy Sells $52.7 Million in WaterBridge Class A Shares
Devon Energy has sold its entire indirect stake of 1,755,174 Class A shares in WaterBridge Infrastructure for approximately $52.7 million. The shares were obtained through the redemption of an equal number of WBI Operating LLC units and cancellation of Class B shares, converted into Class A shares immediately before the open-market sale. Devon continues to hold 16,002,051 Class B shares and an equivalent number of operating units through its subsidiary Devon Holdco, preserving substantial potential ownership. WaterBridge recently raised its full-year guidance for produced water handling volumes and adjusted EBITDA, citing stronger customer demand in the Delaware Basin.
Devon Energy edges out Diamondback Energy as the better E&P investment, Zacks says
Zacks Investment Research compares Devon Energy and Diamondback Energy, concluding Devon is the better investment choice despite both holding a Zacks Rank #3 (Hold). Devon benefits from a diversified multi-basin portfolio, a more attractive valuation at 5.19 times trailing EV/EBITDA versus Diamondback's 8.03 times, a higher dividend yield of 2.99% against 2.4%, a stronger return on equity of 15.22% compared with 7.76%, and a one-year share price gain of 32.1% versus 30.7%. Diamondback counters with lower debt to capital at 24.58% versus Devon's 35.22%, and stronger earnings growth projections of 14.75% in 2026 and 6.87% in 2027, while Devon's earnings per share are expected to decline 3.87% in 2026 before rising 0.61% in 2027. Devon plans capital expenditure of $4.9 billion in 2026, while Diamondback expects to invest $3.9 billion.
Devon Energy earnings estimates revised upward, Zacks maintains Hold rating
Devon Energy has seen its consensus earnings estimates revised significantly higher over the past 30 days, with the current-quarter estimate rising 6.8% to $1.29 per share and the full-year estimate climbing 18.6% to $4.97 per share. The company carries a Zacks Rank #3, or Hold, suggesting it may perform in line with the broader market. Revenue is projected to grow 50.1% in the current quarter to $6.43 billion, while the stock is graded A for value, indicating it trades at a discount to peers. Shares have declined 3.4% over the past month, compared with a 1.4% drop in the S&P 500.
Toms Capital Takes Top Five Stake in Devon Energy, Adding Activist Pressure
Toms Capital has taken a top five stake in Devon Energy following the company's recent merger with Coterra Energy. The hedge fund joins Kimmeridge Energy Management in pushing for operational improvements and possible asset sales. The activist involvement adds closer scrutiny to Devon Energy's post-merger plans and capital allocation choices. Possible outcomes include a review of non-core assets, changes in capital return policies, or adjustments to the way the merged business is organized and managed.
Energy Stocks Slide as Crude Oil Drops to Pre-War Levels
Energy stocks fell sharply in afternoon trading after crude oil prices dropped to their lowest level since the start of the Iran conflict, with tankers resuming transit through the Strait of Hormuz and the U.S. and Iran signaling progress toward ending the war. The S&P 500 energy index declined about 2.45%, making it the weakest major sector even as the broader market held roughly flat. WTI fell about 4% to near $70 and Brent about 4% to near $74, the lowest since February 27, the day before U.S.–Israeli strikes on Iran, leaving crude down roughly 40% from its wartime peak. Among individual stocks, APA Corporation fell 3% and Cactus dropped 3.5%, while larger names like Exxon Mobil and Chevron each fell in the roughly 2–2.5% range. The decline was driven by tankers openly crossing Hormuz with transponders on, the IMO citing safety guarantees, and the IEA estimating the UAE exporting near 85% of pre-war levels.
Liberty Energy and Seadrill stocks fall as crude oil drops to lowest since Iran war
Liberty Energy and Seadrill shares fell sharply in afternoon trading as crude oil prices dropped to their lowest level since the start of the Iran war, with WTI falling about 4% to near $70 and Brent about 4% to near $74. The decline followed tankers resuming transit through the Strait of Hormuz and signals of progress toward ending the conflict between the U.S. and Iran. The S&P 500 energy index fell about 2.45%, with oilfield-services company Liberty Energy down 5.1% and offshore upstream E&P company Seadrill down 5.7%. The broader market held roughly flat, while other energy stocks such as Exxon Mobil, Chevron, Occidental, ConocoPhillips, Devon, and APA Corp also declined.
Devon Energy Finalizes Private Exchange Offers for Coterra Notes
Devon Energy announced the final results of its private exchange offers and consent solicitations for outstanding notes issued by its subsidiary Coterra Energy. As of the June 23 expiration, holders tendered a substantial majority of each series, with participation rates ranging from about 66% to 98% of the aggregate principal amounts outstanding. In exchange, Devon will issue new Devon notes totaling approximately $2.95 billion across the seven series, with settlement expected on or about June 25, 2026. The offers were limited to eligible holders, including qualified institutional buyers in the U.S. and certain non-U.S. persons, and the new notes will be general unsecured obligations of Devon ranking equally with its other unsubordinated debt.
Devon Energy's merger with Coterra Energy sharpens focus on Permian Basin
Devon Energy's merger with Coterra Energy marks a strategic shift toward a concentrated, oil-weighted Delaware Basin model. The combined company projects 2026 production of approximately 1.38 million barrels of oil equivalent per day, including roughly 500,000 barrels per day of oil, with more than 60% of capital spending directed to the Permian Basin. Analysts from Roth, William Blair, and Wells Fargo highlight a clear pivot toward Permian concentration, disciplined capital allocation, and potential non-core asset sales, particularly in the Marcellus and Mid-Continent. Devon introduced a $1.0 billion to $1.5 billion annual buyback framework and aims to return up to 70% of free cash flow to shareholders. Gerdes Energy Research estimates the company holds roughly 5,000 Delaware Basin drilling locations with about ten years of inventory depth at sub-$60 WTI breakeven economics, while projecting nearly $30 billion in cumulative free cash flow from 2026 to 2030.
Raymond James lowers Devon Energy price target to $66
Raymond James lowered its price target on Devon Energy Corporation from $72 to $66 while maintaining a Strong Buy rating. The firm cited investor focus on Devon's upcoming portfolio rationalization as the next major catalyst to help close the stock's valuation gap relative to peers. Devon recently completed its $58 billion merger with Coterra Energy, creating one of the largest independent U.S. oil and gas producers with a strong Permian Basin presence. The company expects to capture $600 million in synergies in 2027 and remains confident in delivering $1 billion of annual pretax synergies on a run-rate basis by year-end 2027.
Oil Expected to Hit $60 a Barrel in 2027, Analyst Says
An analyst predicts Brent Crude oil prices will fall to around $60 per barrel in 2027, returning to pre-conflict levels, after a volatile period driven by market fundamentals. The Strait of Hormuz shutdown has depleted global reserves, with the U.S. strategic oil reserve near 1983 lows, but its reopening could initially cause a price drop before a rise as reserves are replenished. Structural changes include the UAE leaving OPEC, increased U.S. exports, and a potential future oil glut warned by the International Energy Agency. The analyst recommends conservative exposure through integrated giants ExxonMobil and Chevron, citing their diversified portfolios and strong dividends, with Chevron offering a 4% yield.
Devon Energy's diversified operations across five major U.S. basins are supporting upward revisions to its earnings estimates. The Zacks Consensus Estimate for 2026 and 2027 earnings per share has increased 0.20% and 1.23%, respectively, over the past 60 days. The company's multi-basin footprint, which includes the Delaware, Eagle Ford, Anadarko, Williston, and Powder River basins, enhances operational flexibility and mitigates regional risks. Devon's shares have gained 25.1% in the past year, outperforming the Zacks Oil & Gas- Exploration and Production- United States industry's decline of 3.1%. The stock currently carries a Zacks Rank of 3, or Hold.
Western Midstream launches second Permian produced-water treatment pilot
Western Midstream Partners has launched a second produced-water treatment pilot facility in Texas' Permian Basin, developed in partnership with Chevron, ConocoPhillips, Devon Energy, and ExxonMobil. The facility, Joint Industry Project 2, is designed to process 2,000 barrels per day of produced water and generate roughly 1,000 barrels per day of reclaimed freshwater, a tenfold increase in freshwater output compared with the consortium's first pilot project launched in 2023. The first pilot collected more than 50,000 water-quality data points over two years and demonstrated the ability to consistently produce water suitable for industrial cooling, irrigation, and potentially surface discharge. Data from the new project will be used to optimize treatment processes and support future commercial-scale desalination facilities. Western Midstream currently manages approximately 3 million barrels per day of produced water across the Permian, and CEO Oscar Brown said the project aims to transform produced water from a disposal challenge into a valuable resource while easing pressure on West Texas water supplies.
Morgan Stanley cuts Brent oil forecasts but says selloff has overshot physical reality
Morgan Stanley has lowered its Brent crude price forecasts for the rest of 2026, trimming its third-quarter estimate to $90 per barrel from $100 and its fourth-quarter view to $80 from $95, while arguing that the recent 29% plunge in WTI has moved ahead of actual supply disruptions. The bank’s oil strategist Martijn Rats expects only 50% of disrupted production to return by September and 80% by December, leaving a global deficit of about 3.4 million barrels per day in the third quarter. Morgan Stanley also notes that equity valuations for oil producers are discounting a WTI price of roughly $66 per barrel, well below the 12-month strip of around $75, and that the bank’s own 2026 WTI price deck stands at $88.24. The note identifies high US exports and low Chinese imports as structural factors capping upside, while highlighting that global strategic petroleum reserve releases are set to drop sharply from 2.5 million barrels per day to 0.7 million in July and August. The bank maintains Overweight ratings on several major and E&P names, viewing the pullback as a differentiated opportunity.