Stock Analysis on Net

Devon Energy Corp. (NYSE:DVN)

This company has been moved to the archive! The financial data has not been updated since November 8, 2023.

Price to FCFE (P/FCFE)

Microsoft Excel

Free Cash Flow to Equity (FCFE)

Devon Energy Corp., FCFE calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net earnings (loss) attributable to Devon 6,015 2,813 (2,680) (355) 3,064
Net earnings attributable to noncontrolling interests 22 20 9 2 160
Net noncash charges 2,719 2,182 4,230 2,478 (853)
Changes in assets and liabilities, net (226) (116) (95) (82) (143)
Net cash from operating activities 8,530 4,899 1,464 2,043 2,228
Capital expenditures (2,542) (1,989) (1,153) (1,910) (2,451)
Repayments of long-term debt (1,243) (162) (922)
Early retirement of debt (59) (304)
Free cash flow to equity (FCFE) 5,988 1,608 311 (29) (1,449)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).


Net cash from operating activities
The net cash generated from operating activities exhibited fluctuations over the five-year period. Starting at $2,228 million in 2018, there was a slight decline to $2,043 million in 2019, followed by a more significant decrease to $1,464 million in 2020. A substantial recovery occurred in 2021, with cash from operations rising sharply to $4,899 million, and this upward trajectory continued into 2022, reaching a peak of $8,530 million. This trend indicates a considerable improvement in operational cash generation capabilities following the dip in 2020.
Free cash flow to equity (FCFE)
The free cash flow to equity presented a markedly different pattern. It was negative in 2018 at -$1,449 million, showing a reduced deficit in 2019 (-$29 million). In 2020, FCFE turned positive at $311 million, suggesting a recovery that strengthened significantly in subsequent years. The upward momentum continued with values of $1,608 million in 2021 and $5,988 million in 2022. This progressive enhancement in FCFE reflects improved financial flexibility and capacity to generate cash available to shareholders.
Overall trend and insights
Both net cash from operating activities and free cash flow to equity demonstrated a general upward trend from 2020 onwards. The substantial increase in operating cash flows from 2021 suggests stronger operational performance or efficiency improvements. Correspondingly, the FCFE shifted from negative to positive and expanded significantly, indicating better cash management and possibly reduced capital expenditures or debt repayment activities. These patterns collectively point to improving financial health and enhanced liquidity over the latter part of the period analyzed.

Price to FCFE Ratio, Current

Devon Energy Corp., current P/FCFE calculation, comparison to benchmarks

Microsoft Excel
No. shares of common stock outstanding 640,700,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 5,988
FCFE per share 9.35
Current share price (P) 44.18
Valuation Ratio
P/FCFE 4.73
Benchmarks
P/FCFE, Competitors1
Chevron Corp. 14.57
ConocoPhillips 14.01
Exxon Mobil Corp. 19.35
Occidental Petroleum Corp. 4.64
P/FCFE, Sector
Oil, Gas & Consumable Fuels 9.55
P/FCFE, Industry
Energy 10.09

Based on: 10-K (reporting date: 2022-12-31).

1 Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.


Price to FCFE Ratio, Historical

Devon Energy Corp., historical P/FCFE calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
No. shares of common stock outstanding1 654,000,000 664,200,000 673,100,000 382,900,000 438,300,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 5,988 1,608 311 (29) (1,449)
FCFE per share3 9.16 2.42 0.46 -0.08 -3.31
Share price1, 4 57.23 53.85 21.73 22.72 30.27
Valuation Ratio
P/FCFE5 6.25 22.24 47.03
Benchmarks
P/FCFE, Competitors6
Chevron Corp. 10.59 32.05 21.61
ConocoPhillips 8.93 10.61 497.58
Exxon Mobil Corp. 8.73 19.82 13.70
Occidental Petroleum Corp. 18.76 66.22
P/FCFE, Sector
Oil, Gas & Consumable Fuels 9.60 20.45 20.23
P/FCFE, Industry
Energy 10.44 21.48 19.69

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2022 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 5,988,000,000 ÷ 654,000,000 = 9.16

4 Closing price as at the filing date of Devon Energy Corp. Annual Report.

5 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= 57.23 ÷ 9.16 = 6.25

6 Click competitor name to see calculations.


Share Price
The share price shows an overall upward trend over the five-year period, increasing from $30.27 at the end of 2018 to $57.23 by the end of 2022. After a decline in 2019 and 2020, the share price more than doubled from 2020 to 2021, followed by a moderate increase in 2022.
Free Cash Flow to Equity (FCFE) per Share
FCFE per share started negative at -$3.31 in 2018, improving to near breakeven at -$0.08 in 2019. It then turned positive in 2020 at $0.46, followed by steady growth to $2.42 in 2021 and a substantial rise to $9.16 in 2022. This indicates significant improvement in the company’s ability to generate free cash flow for equity holders over time.
Price to FCFE (P/FCFE) Ratio
The P/FCFE ratio was not available for the first three years. For 2020, it stood at a high 47.03, then dropped significantly to 22.24 in 2021, and further declined to 6.25 in 2022. The decreasing P/FCFE ratios suggest that the stock became more attractively priced relative to its free cash flow generation, reflecting improved valuation metrics as the company's cash flows grew.