Why Is Devon Energy Stock Rising Pre-Market?

• The firm reportedly noted an improving oil backdrop in the second half of 2026, and it $1 billion of debt reduction by mid-year as the key catalyst for the shares.
• Advancements in drilling technology and industry consolidation have led to a steady decline in costs in the U.S.
• The company said in November that its capital requirements are projected to decrease by $100 million from 2025 levels next year.

Devon Energy stock (DVN) rose over 1.5% in premarket trading on Friday after UBS analysts turned bullish about the oil producer.

According to TheFly, UBS upgraded Devon Energy to 'Buy' from 'Neutral' and raised the price target to $46 from $40. The new price target implies an upside of 19.8% relative to the stock's previous close.

What Did UBS Say?

The firm reportedly noted an improving oil backdrop in the second half of 2026, and it $1 billion of debt reduction by mid-year as the key catalyst for the shares. Devon's first-half 2026 updates should build confidence that the company will execute the cost-reduction strategy by the end of next year, UBS added.

Advancements in drilling technology and industry consolidation have led to a steady decline in costs in the U.S. Several oil and gas companies have curbed their spending to protect their margins amid volatility in commodity prices. The company said in November that its capital requirements are projected to decrease by $100 million from 2025 levels next year.

It also stated that production optimization has increased production to 20,000 barrels of oil equivalent per day (boepd), exceeding its original guidance.

What Are Stocktwits Users Saying?

Retail sentiment on Stocktwits about Devon moved to 'neutral' from 'bearish' territory a day ago.

Devon Energy stock has gained 12.5% this year, despite a 20% decline in U.S. West Texas Intermediate crude prices.

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