DEVON ENERGY CORP/DE (DVN)

Energy · Oil & Gas · Price $47.12
Updated: Aug 28, 2026
Operating Income (TTM)
$4.2B
Trailing 12 Months
Growth Rate
-20.02%
Log-Linear Regression (16Q)
Operating Margin
21.39%
Operational Efficiency
EV/Operating Income
13.0x
Valuation Multiple
Net Income
$3.3B
After Interest & Taxes

📈 Operating Income History (16 Quarters)

🧮 DVN Operating Income Breakdown

Operating Income = Gross Profit - Operating Expenses (SG&A, R&D, etc.)
Revenue (Top Line) $19.7B
Less: Cost of Revenue → Gross Profit N/A
Equals: Operating Income (EBIT) $4.2B
Then: Less Interest & Taxes → Net Income $3.3B

Understanding Operating Income

Operating Income, also known as EBIT (Earnings Before Interest and Taxes), measures a company's profit from its core business operations before financing costs and taxes. For DVN, the trailing twelve month operating income is $4.2B.

Why Operating Income Matters

Operating income isolates business performance from capital structure decisions (debt vs equity financing) and tax strategies. This makes it ideal for comparing companies with different debt levels or tax situations. It shows how efficiently management runs the core operations.

DVN's operating income growth rate of -20.02% (based on log-linear regression of 16 quarters) indicates significant operational decline requiring investigation.

Operating Income vs Other Profitability Metrics

Net Income: $3.3B →

The bottom line after interest and taxes. Net income shows the final profit, while operating income excludes financing decisions.

Free Cash Flow: $4.7B →

Actual cash generated after capital expenditures. FCF can differ significantly from operating income due to working capital and capex.

Owner Earnings: $4.7B →

Buffett's measure of true cash generation. Adds back depreciation and subtracts only maintenance capex.

Revenue: $19.7B →

The top line that operating income is derived from. Operating margin shows what percentage becomes operational profit.

Operating Margin Analysis

DVN's operating margin of 21.39% shows what percentage of revenue converts to operating profit after all operating expenses. Operating margins between 15-25% are solid and typical of well-managed businesses.

EV/Operating Income Valuation

The EV/Operating Income ratio of 13.0x shows how the market values DVN's operational earnings. Ratios between 8-15x are typical for mature, stable businesses.

Summary: DVN Operating Income Trend

DEVON ENERGY CORP/DE (DVN) has an operating margin of 21.39%, which Zyberno classifies as excellent for a Energy company — above the 15% threshold Zyberno applies to energy businesses where commodity cycles cause operating margins to fluctuate significantly, signaling significant pricing power and operational efficiency. Operating income grew at -20.02% annually — a material decline Zyberno treats as a concern requiring investigation. For complete financial analysis, view the full DVN stock report on Zyberno.

Frequently Asked Questions

What is DVN's current operating income?

DEVON ENERGY CORP/DE's TTM operating income is $4.2B, growing at -20.02% annually — a material decline Zyberno treats as a concern requiring investigation.

Is DVN's operating income growing?

DEVON ENERGY CORP/DE (DVN) has an operating margin of 21.39%, which Zyberno classifies as excellent for a Energy company — above the 15% threshold Zyberno applies to energy businesses where commodity cycles cause operating margins to fluctuate significantly, signaling significant pricing power and operational efficiency. Operating income grew at -20.02% annually — a material decline Zyberno treats as a concern requiring investigation.

What is DVN's operating margin?

DEVON ENERGY CORP/DE (DVN) has an operating margin of 21.39%, which Zyberno classifies as excellent for a Energy company — above the 15% threshold Zyberno applies to energy businesses where commodity cycles cause operating margins to fluctuate significantly, signaling significant pricing power and operational efficiency. Operating income grew at -20.02% annually — a material decline Zyberno treats as a concern requiring investigation.

What is the difference between operating income and EBIT?

Operating income and EBIT (Earnings Before Interest and Taxes) are generally the same metric - both measure profit from core operations before financing costs and taxes. DVN's EBIT/Operating Income is $4.2B.

How does operating income differ from net income?

Operating income excludes interest expense and income taxes, while net income includes them. DVN's operating income is $4.2B versus net income of $3.3B. The difference reflects financing costs and tax burden.

📊 Valuation Trilogy
Three interconnected metrics built on Owner Earnings
💎
Intrinsic Value
DCF Fair Value
$52.63
🛡️
Margin of Safety
Valuation Gap
10.5%
🎯
Expected Return
Projected Annual
-0.7%
Click any metric for full methodology and detailed analysis

📊 Full DVN Stock Report

See DVN's intrinsic value, margin of safety, DCF valuation, and complete financial analysis with 250+ metrics.

💵 DVN Free Cash Flow

Compare to Free Cash Flow which subtracts all capital expenditures, not just maintenance CapEx.

💰 DVN Owner Earnings

Compare to Buffett's Owner Earnings metric which uses maintenance CapEx instead of total capital expenditures.

📈 DVN Earnings Per Share

Analyze EPS trends, P/E ratio, earnings yield, and per-share profitability metrics.

🎯 DVN Earnings Surprise (SUE)

See whether DVN is beating or missing its own earnings trend — Standardized Unexpected Earnings and post-earnings drift.

📊 DVN Revenue

Analyze revenue trends, growth rate, P/S ratio, and top-line sales performance.

💰 DVN Net Income

Analyze the bottom-line profit, P/E ratio, and net profit margin trends.

🔶 DVN Operating Income

Analyze EBIT, operating margin, and core business profitability before interest and taxes.

💜 DVN Gross Profit

Analyze gross margin, pricing power, and profitability before operating expenses.

View Full DVN Report Find More Quality Stocks
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