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On March 3, 2026 several investor‑rights firms opened investigations into the proposed Devon–Coterra transaction. On April 28, 2026 activist investor Kimmeridge issued an open letter urging the incoming board to pursue decisive asset and capital‑allocation actions. Shareholders of both companies approved the merger on May 4, 2026. The transaction closed on May 7, 2026 and the combined company will continue to trade under the ticker DVN.
Technical Analysis
ADX at 16.05 indicates no established trend, signaling that price moves likely stem from event‑driven flows rather than a dominant directional trend; this tempers conviction on breakout follow‑through.
Directional indicators show DI+ at 29.18 with a dip‑and‑reversal and DI‑ at 31.01 with a peak‑and‑reversal, both mechanical patterns that align with short‑term bullish directional pressure despite DI‑ remaining slightly higher than DI+.
MACD reads 0.17 with a dip‑and‑reversal in momentum; MACD sits level with its signal line (0.17), so momentum has shifted upward but lacks a confirmed MACD‑signal cross to assert sustained momentum acceleration.
MRO at 4.33 (positive and declining) implies price sits above the model target and carries a modest downside bias until momentum confirms otherwise.
RSI at 56.25 with a dip‑and‑reversal shows renewed buying interest without overbought conditions, supporting a near‑term range‑to‑higher price bias while volatility remains contained inside the Bollinger band range ($45.99–$51.10 for 1x band).
Price at $49.68 trades above the 20‑day ($48.54), 50‑day ($48.01) and 200‑day ($39.35) averages and above the Ichimoku Tenkan (48.08) and Kijun (46.94), indicating that short‑to‑intermediate price structure favors the upside while the ADX cautions that follow‑through requires volume support. Volume sits below the 10‑day average but above the 200‑day average, suggesting mixed conviction in the current move.
Fundamental Analysis
Revenue totaled $3,807,000,000 with YoY revenue growth negative at approximately -7.62% while QoQ revenue growth prints +57.15%, reflecting recent quarter variability and the transitional effects around the transaction date.
EBIT reached $284,000,000 and EBITDA $1,188,000,000; the EBIT margin stands at 7.46%, below the industry peer mean of 15.23% and below the industry peer median of 12.52%, indicating margin compression relative to typical peers. EBIT margin contracted QoQ ~-64.5% and YoY ~-57.0%.
Net income registered $120,000,000 and EPS came in at $1.04 versus an estimate of $1.09, an EPS surprise of -4.59%, consistent with measured near‑term earnings pressure around the combination.
Leverage and coverage require attention: total debt $8,592,000,000 produces a debt/EBITDA of 7.23x and interest coverage of ~2.41x, the latter well below the industry peer mean of ~12.84x, leaving less cushion versus rate or commodity shocks even as combined scale may enable future deleveraging.
Free cash flow of $626,000,000 yields ~2.19%; free cash growth trends negative YoY, but WMDST values the stock as under‑valued, a view that reflects the company’s free‑cash capacity against a still‑elevated enterprise multiple (enterprise multiple ~29.80) and modest forward PE (~33.05).
Asset efficiency shows an asset turnover ratio of 0.119 (below the industry peer mean of 0.17685), and return metrics remain compressed (ROE ~0.78%, ROA ~0.37%), highlighting that scale and synergies from the merger must translate into margin expansion to materially lift returns.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-03-31 |
| REPORT DATE: | 2026-05-05 |
| NEXT REPORT DATE: | 2026-08-04 |
| CASH FLOW | Begin Period Cash Flow | $ 1.4 B |
| Operating Cash Flow | $ -110.00 M | |
| Capital Expenditures | $ -1.03 B | |
| Change In Working Capital | $ -299.00 M | |
| Dividends Paid | $ -155.00 M | |
| Cash Flow Delta | $ 381.0 M | |
| End Period Cash Flow | $ 1.8 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 3.8 B | |
| Forward Revenue | $ 6.5 B | |
| COSTS | ||
| Cost Of Revenue | $ 3.3 B | |
| Depreciation | $ 26.0 M | |
| Depreciation and Amortization | $ 26.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 3.5 B | |
| PROFITABILITY | ||
| Gross Profit | $ 462.0 M | |
| EBITDA | $ 1.2 B | |
| EBIT | $ 284.0 M | |
| Operating Income | $ 312.0 M | |
| Interest Income | $ 14.0 M | |
| Interest Expense | $ 118.0 M | |
| Net Interest Income | $ -109.00 M | |
| Income Before Tax | $ 166.0 M | |
| Tax Provision | $ 46.0 M | |
| Tax Rate | 28.0 % | |
| Net Income | $ 120.0 M | |
| Net Income From Continuing Operations | $ 120.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.09 | |
| EPS Actual | $ 1.04 | |
| EPS Difference | $ -0.05 | |
| EPS Surprise | -4.587 % | |
| Forward EPS | $ 1.32 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 32.5 B | |
| Intangible Assets | $ 753.0 M | |
| Net Tangible Assets | $ 14.7 B | |
| Total Current Assets | $ 4.8 B | |
| Cash and Short-Term Investments | $ 1.8 B | |
| Cash | $ 1.8 B | |
| Net Receivables | $ 2.2 B | |
| Inventory | $ 319.0 M | |
| Long-Term Investments | $ 403.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 975.0 M | |
| Short-Term Debt | $ 999.0 M | |
| Total Current Liabilities | $ 4.7 B | |
| Net Debt | $ 6.6 B | |
| Total Debt | $ 8.6 B | |
| Total Liabilities | $ 17.1 B | |
| EQUITY | ||
| Total Equity | $ 15.4 B | |
| Retained Earnings | $ 10.2 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 24.83 | |
| Shares Outstanding | 621.440 M | |
| Revenue Per-Share | $ 6.13 | |
| VALUATION | Market Capitalization | $ 28.6 B |
| Enterprise Value | $ 35.4 B | |
| Enterprise Multiple | 29.804 | |
| Enterprise Multiple QoQ | 46.157 % | |
| Enterprise Multiple YoY | 73.52 % | |
| Enterprise Multiple IPRWA | high: 152.107 median: 42.878 mean: 39.918 DVN: 29.804 low: -85.14 |
|
| EV/R | 9.301 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.109 | |
| Asset To Liability | 1.901 | |
| Debt To Capital | 0.358 | |
| Debt To Assets | 0.264 | |
| Debt To Assets QoQ | -2.834 % | |
| Debt To Assets YoY | -8.836 % | |
| Debt To Assets IPRWA | high: 0.622 DVN: 0.264 median: 0.198 mean: 0.193 low: 0.018 |
|
| Debt To Equity | 0.557 | |
| Debt To Equity QoQ | 0.718 % | |
| Debt To Equity YoY | -9.565 % | |
| Debt To Equity IPRWA | high: 2.445 mean: 0.651 DVN: 0.557 median: 0.423 low: 0.02 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.856 | |
| Price To Book QoQ | 0.558 % | |
| Price To Book YoY | 27.206 % | |
| Price To Book IPRWA | high: 6.72 median: 2.225 mean: 2.192 DVN: 1.856 low: -2.11 |
|
| Price To Earnings (P/E) | 44.299 | |
| Price To Earnings QoQ | 0.0 % | |
| Price To Earnings YoY | 62.513 % | |
| Price To Earnings IPRWA | high: 202.32 mean: 75.167 median: 53.008 DVN: 44.299 low: -49.343 |
|
| PE/G Ratio | 1.651 | |
| Price To Sales (P/S) | 7.52 | |
| Price To Sales QoQ | 8.15 % | |
| Price To Sales YoY | 57.788 % | |
| Price To Sales IPRWA | high: 54.484 mean: 8.493 median: 7.831 DVN: 7.52 low: 0.604 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 33.049 | |
| Forward PE/G | 1.232 | |
| Forward P/S | 4.404 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 8.82 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.119 | |
| Asset Turnover Ratio QoQ | -9.52 % | |
| Asset Turnover Ratio YoY | -18.12 % | |
| Asset Turnover Ratio IPRWA | high: 0.57 median: 0.18 mean: 0.177 DVN: 0.119 low: 0.001 |
|
| Receivables Turnover | 1.884 | |
| Receivables Turnover Ratio QoQ | -17.104 % | |
| Receivables Turnover Ratio YoY | -15.207 % | |
| Receivables Turnover Ratio IPRWA | high: 5.094 mean: 2.045 DVN: 1.884 median: 1.729 low: 0.065 |
|
| Inventory Turnover | 10.214 | |
| Inventory Turnover Ratio QoQ | 13.36 % | |
| Inventory Turnover Ratio YoY | -1.936 % | |
| Inventory Turnover Ratio IPRWA | DVN: 10.214 high: 9.939 mean: 2.733 median: 2.702 low: 0.115 |
|
| Days Sales Outstanding (DSO) | 48.441 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 32.313 | |
| Cash Conversion Cycle Days QoQ | 26.047 % | |
| Cash Conversion Cycle Days YoY | 26.175 % | |
| Cash Conversion Cycle Days IPRWA | high: 141.82 DVN: 32.313 median: 7.309 mean: -6.837 low: -114.352 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 135.964 | |
| CapEx To Revenue | -0.27 | |
| CapEx To Depreciation | -39.577 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 22.8 B | |
| Net Invested Capital | $ 23.8 B | |
| Invested Capital | $ 23.8 B | |
| Net Tangible Assets | $ 14.7 B | |
| Net Working Capital | $ 28.0 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.383 | |
| Current Ratio | 1.006 | |
| Current Ratio QoQ | 2.6 % | |
| Current Ratio YoY | -6.802 % | |
| Current Ratio IPRWA | high: 5.938 mean: 1.148 median: 1.094 DVN: 1.006 low: 0.43 |
|
| Quick Ratio | 0.939 | |
| Quick Ratio QoQ | 4.491 % | |
| Quick Ratio YoY | -4.965 % | |
| Quick Ratio IPRWA | high: 1.355 DVN: 0.939 mean: 0.888 median: 0.855 low: 0.358 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 7.232 | |
| Cost Of Debt | 0.989 % | |
| Interest Coverage Ratio | 2.407 | |
| Interest Coverage Ratio QoQ | -66.928 % | |
| Interest Coverage Ratio YoY | -60.458 % | |
| Interest Coverage Ratio IPRWA | high: 31.331 mean: 12.841 median: 12.438 DVN: 2.407 low: -51.648 |
|
| Operating Cash Flow Ratio | -0.023 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 25.646 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 0.774 | |
| Dividend Payout Ratio | 1.292 | |
| Dividend Rate | $ 0.25 | |
| Dividend Yield | 0.005 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 2.987 % | |
| Revenue Growth | -7.62 % | |
| Revenue Growth QoQ | 57.146 % | |
| Revenue Growth YoY | -784.636 % | |
| Revenue Growth IPRWA | high: 74.257 % mean: 7.451 % median: 6.615 % DVN: -7.62 % low: -47.538 % |
|
| Earnings Growth | 26.829 % | |
| Earnings Growth QoQ | -226.827 % | |
| Earnings Growth YoY | 522.483 % | |
| Earnings Growth IPRWA | high: 300.0 % median: 41.618 % mean: 39.477 % DVN: 26.829 % low: -279.592 % |
|
| MARGINS | ||
| Gross Margin | 12.136 % | |
| Gross Margin QoQ | -49.019 % | |
| Gross Margin YoY | -54.672 % | |
| Gross Margin IPRWA | high: 80.204 % mean: 25.413 % median: 24.168 % DVN: 12.136 % low: -31.917 % |
|
| EBIT Margin | 7.46 % | |
| EBIT Margin QoQ | -64.5 % | |
| EBIT Margin YoY | -57.035 % | |
| EBIT Margin IPRWA | high: 91.389 % mean: 15.234 % median: 12.516 % DVN: 7.46 % low: -194.638 % |
|
| Return On Sales (ROS) | 8.195 % | |
| Return On Sales QoQ | -59.844 % | |
| Return On Sales YoY | -52.802 % | |
| Return On Sales IPRWA | high: 91.389 % median: 15.231 % mean: 14.293 % DVN: 8.195 % low: -40.585 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 626.0 M | |
| Free Cash Flow Yield | 2.186 % | |
| Free Cash Flow Yield QoQ | 4.244 % | |
| Free Cash Flow Yield YoY | -53.618 % | |
| Free Cash Flow Yield IPRWA | high: 11.076 % DVN: 2.186 % mean: 0.243 % median: -0.058 % low: -11.047 % |
|
| Free Cash Growth | 4.16 % | |
| Free Cash Growth QoQ | -217.814 % | |
| Free Cash Growth YoY | -93.155 % | |
| Free Cash Growth IPRWA | high: 379.182 % DVN: 4.16 % mean: -84.631 % median: -109.229 % low: -590.685 % |
|
| Free Cash To Net Income | 5.217 | |
| Cash Flow Margin | -2.889 % | |
| Cash Flow To Earnings | -0.917 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 0.374 % | |
| Return On Assets QoQ | -79.094 % | |
| Return On Assets YoY | -76.756 % | |
| Return On Assets IPRWA | high: 10.33 % mean: 1.247 % median: 1.046 % DVN: 0.374 % low: -10.385 % |
|
| Return On Capital Employed (ROCE) | 1.021 % | |
| Return On Equity (ROE) | 0.008 | |
| Return On Equity QoQ | -78.502 % | |
| Return On Equity YoY | -77.091 % | |
| Return On Equity IPRWA | high: 0.13 mean: 0.038 median: 0.034 DVN: 0.008 low: -0.293 |
|
| DuPont ROE | 0.775 % | |
| Return On Invested Capital (ROIC) | 0.859 % | |
| Return On Invested Capital QoQ | -68.465 % | |
| Return On Invested Capital YoY | -66.962 % | |
| Return On Invested Capital IPRWA | high: 8.567 % mean: 2.74 % median: 2.075 % DVN: 0.859 % low: -18.473 % |
|