10 Cheap Energy Stocks to Buy Now

2. Devon Energy Corporation (NYSE:DVN)

Forward P/E Ratio as of May 11: 8.28

Devon Energy Corporation (NYSE:DVN) is a leading independent energy company engaged in finding and producing oil and natural gas, with operations focused onshore in the United States.

Devon Energy Corporation (NYSE:DVN) missed profit estimates in Q1 2025 as its adjusted EPS of $1.21 fell slightly below expectations by $0.01, as lower oil prices offset higher production. The company’s revenue, however, surged by 23.8% YoY to $4.45 billion, beating forecasts by $80 million. DVN bolstered its portfolio last year with the $5 billion acquisition of certain assets of Grayson Mill Energy. As a result, the company’s production rose 22.7% YoY during the first quarter to 815 thousand barrels of oil equivalent per day (MBoepd).

Devon Energy Corporation (NYSE:DVN) generated $1 billion in free cash flow in Q1. Moreover, the company recently announced plans to boost its annual free cash flow by $1 billion by the end of 2026 by reducing drilling and completion costs and improving operating margins. It seems to be working already since earlier this month, DVN cut its CapEx plan by $100 million to between $3.7 billion and $3.9 billion, while also raising its current-year oil production forecast by 1% to between 382,000 and 388,000 barrels per day.