DVN: Fresh Guidance Post CTRA Merger Inline

Research evidence excerpt

DVN: Fresh Guidance Post CTRA Merger Inline

EQUITY RESEARCH QUICK TAKE

RBC Capital Markets, LLC

Scott Hanold (Analyst)

Octavian Jordan (AVP)

Samuel Cox (Senior Associate)

June 9, 2026

Devon Energy Corporation

Fresh Guidance Post CTRA Merger Inline

NYSE: DVN | USD 44.07 | Sector Perform | Price Target USD 59.00

Sentiment: Neutral

RBC Quick Take: DVN's updated FY26 guidance that includes CTRA was consistent with our model and consensus for both capital

and production. FY26 midpoint production of 1,380 Mboe/d (500 Mb/d oil) and capital of $4.9 billion is similar to the 1,363 Mboe/d

(499 Mb/d oil) and $4.8 billion capital for consensus. Our conversation with management highlighted better performance relative

to expected on the pace of the $1 billion synergy target in addition to production performance. DVN maintains its $0.32/share

base dividend and plans to allocate 70% of FCF to investors using a base level buyback program and opportunistic buybacks. DVN

expects to allocate as much as $3.0 billion to shareholder returns annually. We think this update is essentially in-line with market

expectations, although there could be tailwinds on synergy capture timing. Investors should appreciate the updated capital return

framework. Management did not provide a defined time frame on asset sales but indicated it was moving judiciously.

Press Release Summary

• DVN released updated guidance after closing its acquisition of CTRA. FY26 production is expected to average 1,380 Mboe/d (500

Mb/d oil) at the midpoint, with a range of 1,355-1,405 Mboe/d (490-510 Mb/d oil).

• FY26 capital spending is expected at ~$4.9 billion (range of $4.8-$5.0 billion). More than 60% is to be allocated to the Permian

Basin ($2.9 billion).