DVN: Quarterly Check-Up: 2Q26

Research evidence excerpt

DVN: Quarterly Check-Up: 2Q26

RBC Capital Markets, LLC

Scott Hanold (Analyst)

(512) 708-6354, scott.hanold@rbccm.com

Octavian Jordan (AVP)

(212) 618-3012, octavian.jordan@rbccm.com

Samuel Cox (Senior Associate)

(512) 708-6309, samuel.cox@rbccm.com

July 8, 2026

Devon Energy Corporation Sector Perform

NYSE: DVN; USD 42.41RESEARCH Quarterly Check-Up: 2Q26 Price Target USD 59.00

Our view: With updated 2Q26 guidance for the combined company Scenario Analysis* released just a few weeks ago, we expect an operationally in-line quarter,

although production should be just above the midpoint. The portfolio Downside Current Price Upside

review is a key initiative that investors await, but we expect a decision Scenario Price Target Scenario

shortly after 2Q26 earnings. Key investor discussions/debates are potential 29.00 42.41 59.00 66.00

asset sales and use of proceeds, recent lease sale activity and plans, pace 29% 42% 59%

of stock buybacks, and inventory duration. *Implied Total ReturnsEQUITY Key Statistics

Key points: SharesDividend:O/S (MM): 1,159.01.31 MarketYield: Cap (MM): 49,1533.1%

• Our 2Q26 EPS/CFPS estimates rise to $1.45/$3.05 following our quarterly Debt to Cap: 37% Tr. 12 ROE: 15.37%

pricing MtM and accounting for the recent guidance updated post the Avg. Daily Volume: 15,285,908 3-Yr. Est. EPS Growth: 9.00%

CTRA merger. We are mixed to the $1.39/$3.33 consensus but above Dividend includes fixed, variable and special dividends. Yield based on

the $1.39/$3.05 implied guidance midpoint. Our CFPS estimate considers total estimated dividend.

$75 million of transaction-related costs ($0.08/share) not assumed in the RBC Estimates implied guidance and some consensus numbers. FY Dec 2025A 2026E 2027E 2028E