AI Takeaway
Devon Energy (DVN) grew FY2025 revenue 7.8% to $17.2B but saw net income fall 8.7% to $2.6B, while generating robust operating cash flow of $6.7B and reducing long-term debt by 5.6%.
Revenue
$17.19B
++7.83% YoY
EPS (Basic)
$4.18
-8.73% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
DVN's total revenue increased 7.8% YoY from $15.94B to $17.19B in FY2025, suggesting higher realized commodity prices or increased production volumes contributed to top-line expansion despite a challenging energy price environment.
Source: Source: 10-K Income Statement, Financial Data
Net income fell 8.7% YoY from $2.89B to $2.64B, indicating that cost pressures — likely higher operating expenses, D&A (up 10.4% to $3.60B), or taxes — more than offset the revenue gains, compressing profitability.
Source: Source: 10-K Income Statement & Cash Flow, Financial Data
Operating cash flow rose 1.7% to $6.71B in FY2025, demonstrating Devon's ability to convert revenue into cash even as net income declined, supported by significant non-cash D&A charges of $3.60B.
Source: Source: 10-K Cash Flow Statement, Financial Data
2 more insights available
Upgrade to unlockDevon Energy's profitability is directly tied to oil, natural gas, and NGL prices, which are inherently volatile. The 8.7% decline in net income despite 7.8% revenue growth suggests that cost structures do not flex proportionally with revenue, making earnings highly sensitive to price swings. A sustained downturn in commodity prices could materially impair cash flows and the ability to fund dividends and buybacks.
Source: Source: 10-K Financial Data, Income Statement
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $0.82 versus the $0.82 analyst consensus — a +0.0% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $17.19B | $15.94B | +7.83% |
Net Income | $2.64B | $2.89B | -8.68% |
EPS (Basic) | $4.18 | $4.58 | -8.73% |
EPS (Diluted) | $4.17 | $4.56 | -8.55% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $31.6B | $30.49B | +3.64% |
Current Assets | $4.01B | $3.43B | +16.90% |
Current Liabilities | $4.09B | $3.31B | +23.48% |
Stockholders' Equity | $15.53B | $14.5B | +7.12% |
Cash & Equivalents | $1.38B | $811M | +70.65% |
Long-Term Debt | $8.39B | $8.88B | -5.56% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $6.71B | $6.6B | +1.68% |
Investing Cash Flow | $-3.39B | $-7.33B | +53.72% |
Financing Cash Flow | $-2.73B | $706M | -486.69% |
Share Buybacks | $1.05B | $1.06B | -0.66% |
D&A | $3.6B | $3.25B | +10.45% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 15.4% | — | — |
ROE | 17.0% | — | — |
ROA | 8.4% | — | — |
Current Ratio | $0.98 | — | — |
Other companies in Oil & Gas Exploration & Production
Devon Energy reported FY2025 revenue of $17.19B, up 7.8% YoY, but net income declined 8.7% to $2.64B due to rising costs including a 10.4% increase in D&A. Operating cash flow remained strong at $6.71B, and the company reduced long-term debt by 5.6% to $8.39B.
DVN's net income fell 8.7% to $2.64B even as revenue grew 7.8% to $17.19B, primarily because cost pressures — including D&A rising 10.4% to $3.60B — outpaced revenue gains and compressed margins. The net margin declined from approximately 18.2% to 15.4% YoY.
Devon's financial health is generally solid: operating cash flow of $6.71B, cash balances up 70.7% to $1.38B, and long-term debt reduced to $8.39B. However, the current ratio of 0.98 indicates current liabilities slightly exceed current assets, and the company carries meaningful leverage relative to its equity base.
Yes, Devon Energy repurchased approximately $1.05B in shares during FY2025, nearly flat compared to $1.06B in the prior year. Basic EPS was $4.18, down 8.7% YoY, reflecting the lower net income partially offset by the reduced share count from buybacks.
Key risks for DVN include commodity price volatility that can sharply impact earnings, a rising cost base (D&A up 10.4%) that compressed net margins to 15.4%, and a current ratio below 1.0 (0.98) that signals tight near-term liquidity. The company also carries $8.39B in long-term debt, which could pressure free cash flow if energy prices weaken significantly.