Billionaire Ken Griffin’s 10 Midcap Stock Picks with Huge Upside Potential

7. Devon Energy Corporation (NYSE:DVN) 

Stock Upside Potential:   33.59%

Citadel Investment Group’s Stake: $367,530,374

Devon Energy Corporation operates as an independent energy company. It focuses on the development, exploration, and production of natural gas, oil, and natural gas liquids. The company’s share price has been declining since late 2022, but the business continues to perform strongly, making it an attractive investment.

DVN ended 2024 in a strong position. The company generated $738 million in free cash flows, $444 million of which was returned to shareholders. Out of the $444 million, it allocated $300 million for share buybacks. Aided by the integration of Grayson Mill assets and Eagle Ford well productivity, DNV’s oil production also set a new record of 398,000 barrels per day.

Based on strong earnings, the firm updated its 2025 guidance. It is targeting 815,000 Barrels of Oil Equivalent (BOE) per day. Capital spending was lowered by $200 million from the previous outlook. Clay Gaspar pointed out improved operational momentum and capital efficiency from multiple zone projects. The firm highlighted plans to improve annual free cash flows by $1 billion, and analysts are loving it.

Capital One Securities’ Phillips Johnston mentioned:

The plan itself doesn’t come as a surprise, but we think the size is probably a bit larger than the Street has been expecting. Meaningful [free cash flow] uplift potential, so this looks to be more than just window dressing.