Munger Mode rating: 2 out of 5 — Sell. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
Written in the first person by Warren Buffett and Charlie Munger, applying our own standards. Primary source: Devon's Form 10-Q for the quarter ended June 30, 2026, supplemented by the Q2 2026 earnings release and call (August 5, 2026) and current market data. Devon Energy is now, following its May 2026 all-stock "merger of equals" with Coterra Energy, one of the largest independent oil and gas producers in the United States — roughly 1.4 million barrels of oil equivalent per day, a $48 billion market capitalization, and positions in the Delaware Basin, the Marcellus Shale, the Anadarko Basin, the Eagle Ford, and the Rockies. The second quarter showed $1.9 billion of net earnings, $1.7 billion of adjusted free cash flow, a debt-to-capitalization ratio of 18.1%, and a dividend raised 33%. The stock trades at perhaps 8-9 times earnings and an 11% free cash flow yield.
Recent filings analysed: 8-K (2026-08-27), 8-K (2026-08-20), 10-Q (2026-08-05), 8-K (2026-08-04).
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