Rising Oil Prices Drive Investment in Energy Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 14 2026
0mins
Should l Buy DVN?
Source: NASDAQ.COM
- Oil Price Surge: Oil prices have surged from around $57 per barrel at the beginning of the year to nearly $88, creating opportunities for investors to protect their portfolios against high oil price environments despite the unpredictable future trajectory.
- Strategic Adjustments: Both Devon Energy and Diamondback Energy have adjusted their strategies to thrive in a downtrend that began in fall 2023, ensuring profitability at $50 oil, thus allowing for additional gains when prices rise.
- Merger Synergies: Devon's impending merger with Coterra Energy will nearly double its acreage in the Delaware Basin, resulting in a break-even price of less than $40 per barrel, significantly enhancing the company's competitive position in the market.
- Cash Flow and Valuation Advantage: Both companies trade at extremely low price-to-free cash flow multiples, and combined with favorable valuations and low break-even prices, they present compelling investment opportunities, especially in a scenario where oil prices may remain elevated for an extended period.
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Analyst Views on DVN
Wall Street analysts forecast DVN stock price to fall
20 Analyst Rating
18 Buy
2 Hold
0 Sell
Strong Buy
Current: 52.070
Low
41.00
Averages
45.53
High
55.00
Current: 52.070
Low
41.00
Averages
45.53
High
55.00
About DVN
Devon Energy Corporation is an oil and gas producer in the United States with a diversified multi-basin portfolio headlined by an acreage position in the Delaware Basin. The Company is primarily engaged in the exploration, development and production of oil, natural gas and natural gas liquids (NGLs). It owns a portfolio of assets located in the Delaware Basin, Rockies, Eagle Ford and Anadarko Basin. The Delaware Basin operates in southeast New Mexico and across the state line into west Texas. It offers exploration and development opportunities from many geologic reservoirs and play types, including the oil-rich Wolfcamp, Bone Spring, Avalon and Delaware formations. Its Rockies development consists of its Williston Basin and Powder River Basin assets. The Eagle Ford operations are located in Texas' DeWitt and Karnes counties. The Anadarko Basin development is located in western Oklahoma. It has a joint venture with Dow to develop a portion of its Anadarko Basin acreage.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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