Devon Energy: A Deep Dive + new price targets

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Investment Memo #118

February 27, 2026

Devon Energy continues to show that in the world of US shale, the only real sustainable competitive advantage comes through efficiency. With operating costs falling almost every single quarter and a reserve replacement profile that shows they are actually upgrading the quality of their ‘dirt’, Devon is entering into the Coterra merger from a position of operational strength.

In today’s investment memo:

• We do a deep dive into Q4 earnings.

• We get into the “nitty gritty” of Devon’s 193% reserve replacement to try to determine the real quality of their new reserves by digging deep into the 10-K.

• We analyze the blockbuster merger with Coterra Energy.

• And we build a new dynamic valuation model to determine our buy and sell targets.