Texas Pacific Land vs Devon Energy

This page compares Texas Pacific Land and Devon Energy to explain their business models, financial performance, and market context. The content is presented in a neutral, accessible way to help readers understand how each company creates value, operates within its sector, and responds to industry trends. Educational content, not financial advice.

This page compares Texas Pacific Land and Devon Energy to explain their business models, financial performance, and market context. The content is presented in a neutral, accessible way to help reader...

Comparison Snapshot

Key Financial Metrics

TPL

Metric

DVN

$23.56B

Market Cap

$24.75B

-8.11%

Potential Profit

13.89%

Hold

Analyst Rating

Buy

Why It's Moving

UBS Turns Bullish on Devon Energy as Cost Cuts and Oil Tailwinds Spark Pre-Market Gains

UBS raised its price target to $46 from $40, pointing to $1 billion in debt reduction by mid-2026 as a major catalyst for shareholder value.
Devon plans to cut 2026 capital requirements by $100 million versus 2025 levels, with production optimization already lifting output by 20,000 barrels of oil equivalent per day.
Retail sentiment shifted to neutral from bearish, fueled by drilling tech advances and industry consolidation driving down U.S. costs.

Sentiment:

🐃Bullish

UBS Turns Bullish on Devon Energy as Cost Cuts and Oil Tailwinds Spark Pre-Market Gains

UBS raised its price target to $46 from $40, pointing to $1 billion in debt reduction by mid-2026 as a major catalyst for shareholder value.
Devon plans to cut 2026 capital requirements by $100 million versus 2025 levels, with production optimization already lifting output by 20,000 barrels of oil equivalent per day.
Retail sentiment shifted to neutral from bearish, fueled by drilling tech advances and industry consolidation driving down U.S. costs.

Sentiment:

🐃Bullish

Investment Analysis

Texas Pacific Land

TPL

Pros

Texas Pacific Land has a strong competitive position as one of the largest landowners in Texas with significant surface acres and oil and gas royalty interests in the Permian Basin.
The company shows robust profitability metrics with a net margin over 60% and a return on equity exceeding 40%, indicating efficient capital utilisation.
Revenue and earnings have sustained double-digit growth recently, supported by both land/resource management and expanding water services operations.

Considerations

TPL's valuation metrics are extremely high relative to peers and industry averages, with a price-to-earnings ratio near 47x, suggesting potential overvaluation risk.
The business is heavily concentrated geographically and operationally in the Permian Basin, exposing it to regional and commodity market fluctuations.
Despite strong recent growth, the stock's high premium multiples limit visibility on upside and make it vulnerable to market corrections or declines in energy prices.

Devon Energy

DVN

Pros

Devon Energy has a substantial market capitalisation and strong operating presence in North American oil and natural gas production.
With a forward price-to-earnings ratio around 7.3x, Devon’s valuation is attractive relative to the broader energy sector and its peer group.
The company benefits from operational efficiencies and a diversified portfolio that provides some resilience against commodity price cycles.

Considerations

Devon Energy’s growth outlook is modest, with expected earnings and revenue growth rates under 3% in the near term.
The company remains exposed to commodity price volatility that can significantly impact cash flows and reinvestment capabilities.
Debt levels and capital expenditure requirements could constrain financial flexibility, especially if energy prices weaken or production costs rise.

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About The Companies

Texas Pacific Land (TPL)

Texas Pacific Land Trust (TPL) is a US-listed trust that owns a large portfolio of land and associated mineral and water rights in West Texas — one of the state’s most resource-rich regions. With a market capitalisation of about $21.3bn, TPL’s cash flows come from oil and gas royalties, groundwater sales, easements and leases for pipelines and renewable energy, plus traditional land uses such as grazing and hunting. Investors should note TPL is a hybrid asset: it offers exposure to real assets (land and water) while being sensitive to commodity cycles and Texas regulatory and legal developments. The trust has a long-term, asset-based value proposition but revenue can be volatile year-to-year. This summary is for general educational purposes only and is not personal financial advice; investors should consider their own goals, risk tolerance and seek independent advice before acting.

Devon Energy (DVN)

Devon Energy Corporation (DVN) is an independent oil and natural gas exploration and production company with operations concentrated in North American shale basins. With a market capitalisation of about $20.35 billion, Devon focuses on high-return acreage and aims to deliver free cash flow through a combination of steady production, cost control and capital discipline. The company generates revenue by producing and marketing crude oil, natural gas and natural gas liquids, and its earnings are sensitive to commodity price swings. In recent years Devon has emphasised shareholder returns via dividends and share buybacks while investing in efficiency and emissions reduction initiatives. Key considerations for investors include exposure to volatile oil and gas prices, operational risks, and regulatory or environmental developments that may affect production and costs. This summary provides general educational information and is not personalised financial advice; investors should assess suitability and consider seeking independent advice before acting.

Devon Energy (DVN) Next Earnings Date

Devon Energy (DVN) is scheduled to report its next earnings on February 17, 2026, after market close. This release will cover the fourth quarter of 2025, aligning with the company's confirmed announcement and consensus estimates across multiple analyst sources. Investors should monitor for updates, as dates are occasionally subject to minor adjustments based on historical patterns.

Devon Energy (DVN) Next Earnings Date

Devon Energy (DVN) is scheduled to report its next earnings on February 17, 2026, after market close. This release will cover the fourth quarter of 2025, aligning with the company's confirmed announcement and consensus estimates across multiple analyst sources. Investors should monitor for updates, as dates are occasionally subject to minor adjustments based on historical patterns.

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Which Baskets Do They Appear In?

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Comparison Snapshot

Why It's Moving

UBS Turns Bullish on Devon Energy as Cost Cuts and Oil Tailwinds Spark Pre-Market Gains

UBS Turns Bullish on Devon Energy as Cost Cuts and Oil Tailwinds Spark Pre-Market Gains