Devon Energy Sent Investors $2 Billion in Cash Last Year and Could Return Even More in 2025
Devon Energy (NYSE: DVN) has rebuilt its oil and gas resource portfolio over the years into one that can generate a lot of cash. It accelerated that transition in late 2020 when the company agreed to a merger of equals with WPX Energy to create a leading oil and gas producer focused on generating free cash flow and returning money to shareholders. Devon has continued that shift ever since. That cash return focus was on full display last year. Devon Energy produced $3 billion in free cash flow, $2 billion of which it returned to shareholders. The oil company is on track to produce even more free cash flow this year, which could allow it to return even more money to investors in 2025. Devon Energy generated $6.6 billion in operating cash flow last year. It used about $3.6 billion for capital expenses to maintain and grow its oil and gas production. That enabled the company to produce $3 billion in free cash flow (FCF). It returned about two-thirds of that to shareholders through dividends ($900 million in four fixed quarterly payments totaling $0.88 per share and three variable dividends totaling $0.57 per share) and share repurchases ($1.1 billion). Continue reading
Devon Energy (NYSE: DVN) has rebuilt its oil and gas resource portfolio over the years into one that can generate a lot of cash. It accelerated that transition in late 2020 when the company agreed to a merger of equals with WPX Energy to create a leading oil and gas producer focused on generating free cash flow and returning money to shareholders. Devon has continued that shift ever since.
That cash return focus was on full display last year. Devon Energy produced $3 billion in free cash flow, $2 billion of which it returned to shareholders. The oil company is on track to produce even more free cash flow this year, which could allow it to return even more money to investors in 2025.
Devon Energy generated $6.6 billion in operating cash flow last year. It used about $3.6 billion for capital expenses to maintain and grow its oil and gas production. That enabled the company to produce $3 billion in free cash flow (FCF). It returned about two-thirds of that to shareholders through dividends ($900 million in four fixed quarterly payments totaling $0.88 per share and three variable dividends totaling $0.57 per share) and share repurchases ($1.1 billion).
