We recently published a list of 12 High Growth Oil Stocks to Buy. In this article, we are going to take a look at where Devon Energy Corporation (NYSE:DVN) stands against other high growth oil stocks to buy.
The oil and gas sector remains a cornerstone of the global economy, driving industries from transportation to manufacturing. Despite the accelerating shift toward renewable energy, oil continues to account for a substantial share of the world’s primary energy supply. According to the International Energy Agency (IEA), global oil demand is projected to increase by approximately 3.2 million barrels per day by 2030 compared to 2023 levels.
Technological Advancements:
Technological advancements have revolutionized oil exploration and production, delivering measurable improvements in efficiency and cost reduction. Innovations in hydraulic fracturing and horizontal drilling have significantly boosted U.S. shale production. The Energy Information Administration (EIA) reported that U.S. crude oil production has reached approximately 13 million barrels per day in recent years. These technologies have made previously unprofitable reserves economically viable, enhancing the industry’s resilience.
US Crude Oil Production:
The U.S. Energy Information Administration (EIA) further projects that U.S. crude oil production will average 13.6 million barrels per day (b/d) in 2026, an increase from the 13.2 million b/d recorded in 2024. This growth is primarily driven by enhanced efficiency in drilling operations and increased output from the Permian Basin, which is expected to account for over 50% of U.S. crude oil production by 2026. In addition to U.S. growth, global liquid fuel production is expected to increase by 1.7 million b/d in 2025, according to EIA. This is driven by both the relaxation of OPEC+ production cuts and further growth from non-OPEC countries such as Canada, Brazil, and Guyana.
Emerging Markets:
Emerging markets are poised to be the primary drivers of future oil demand. India and other emerging Asian economies are anticipated to contribute a combined 500,000 barrels per day to the increase in demand. This surge is largely attributed to the expanding middle classes and the increasing energy needs of developing economies.
Margers and Acquistion:
Concurrently, the oil industry is undergoing significant consolidation. Recent mergers and acquisitions have been valued at $150 billion according to Enverus Intelligence Research, as companies seek to streamline operations, expand reserves, and harness economies of scale.
Our Methodology
To compile a list of the 12 High-Growth Oil Stocks to Buy, we first used the Finviz stock screener to identify oil companies with over 20% revenue growth over the last five years. We then cross-checked the data on Reuters to verify financial health and growth potential before finalizing our selection. Finally we ranked these companies according to their revenue growth over the last five years.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Is Devon Energy Corporation (DVN) the High Growth Oil Stock to Buy?
A group of technicians in hazmat suits inspecting a natural gas storage tank.
Devon Energy Corporation (NYSE:DVN) is a leading oil and gas producer in the United States with a diverse multi-basin portfolio. The company focuses on the exploration, development, and production of oil, natural gas, and natural gas liquids (NGLs) across key regions, including the Delaware Basin, Eagle Ford, Anadarko Basin, Williston Basin, and Powder River Basin.
In recent months, Devon Energy Corporation (NYSE:DVN) has undergone significant developments beyond its financial metrics. In December 2024, the company announced that President and CEO Rick Muncrief would retire effective March 1, 2025, with Chief Operating Officer Clay Gaspar set to succeed him. Additionally, in September 2024, Devon Energy Corporation (NYSE:DVN) completed a strategic $5 billion acquisition of Grayson Mill Energy, enhancing its production capabilities in the Rockies and Eagle Ford basins.
Devon Energy Corporation (NYSE:DVN) posted strong full-year 2024 results, with net earnings of $2.9 billion and core earnings of $3.1 billion. The company achieved record production of 737,000 barrels of oil equivalent per day, helping generate $6.6 billion in operating cash flow and $3.0 billion in free cash flow. It continued shareholder returns, distributing $2.0 billion through dividends and buybacks, and increased its quarterly dividend by 9% for 2025.
Overall, DVN ranks 12th on our list of high growth oil stocks to buy. While we acknowledge the potential for DVN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DVN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
