Devon Energy

Devon has returned significant cash to owners while maintaining balance sheet discipline: in 2025 it repurchased $1.05 billion of stock, paid $619 million in dividends, and retired $485 million of debt. The fixed dividend is set at $0.24 for Q1 2026, with a planned step‑up to $0.315 after the Coterra close, subject to board approval.

The company focuses capex on high‑return inventory and is executing a program to drive $1.0 billion of annual pre‑tax FCF improvements by 2026. M&A has been selective but material: Grayson Mill (2024) added Williston scale; the announced Coterra merger increases inventory quality and scale with identified synergies.

Risks include acquisition integration, commodity‑driven timing of buybacks, and variable payouts historically tied to excess FCF.