Devon Energy: Management Meeting Takeaways: Re-Rating Ahead

Research evidence excerpt

Devon Energy: Management Meeting Takeaways: Re-Rating Ahead

Idea

June 11, 2026 10:23 PM GMT

Morgan Stanley & Co. LLCMDevon Energy | North America Devin McDermott

Equity Analyst and Commodities Strategist

Management Meeting Devin.McDermott@morganstanley.comJoe Laetsch, CFA +1 212 761-1125

Equity Analyst

Joe.Laetsch@morganstanley.com +1 212 761-8804

Takeaways: Re-Rating Ahead Helen Lin

Research Associate

Helen.Lin@morganstanley.com +1 212 761-0766

We hosted DVN for investor meetings in Boston. Mgmt laid out Svetlana Do

a clear path to unlock value post merger, with high confidence in Research Associate

Svetlana.DO@morganstanley.com +1 212 761-2409

production, capital, shareholder returns and synergy targets. The Justin W Latran, CFA

portfolio review is also underway amid a strong market for high ResearchJustin.Latran@morganstanley.comAssociate +1 212 761-2869

quality assets. Reiterate Overweight. Jacqueline M Kenny

Jacqueline.Kenny@morganstanley.com +1 212 761-2253

Key Takeaways

Combined 2026 guidance broadly aligns with MSe and helps de-risk the near-

term outlook. Investor focus shifts to execution & delivery of strong pro-forma

FCF.

Portfolio review is underway. Permian is the "foundation" of the company, other Devon Energy Corp (DVN.N, DVN UN)

assets are being evaluated on capital efficiency, inventory, & strategic fit. Exploration & Production | United States of America

Strong through-the-cycle shareholder returns, with a growing base dividend and Stock Rating Overweight

Industry View In-Line

~$1-1.5 B minimum annual buybacks, with flex up to 70% of FCF. Price target $66.00

Shr price, close (Jun 11, 2026) $44.61

$1 B synergy target is the floor, not ceiling. Management expressed high Mkt cap, curr (mm) $51,600

52-Week Range $52.70-31.45