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Devon Energy vs. EOG: Which Shale Stock Offers More Upside in 2026?
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Key Takeaways
Devon Energy's 2026 EPS estimate rose 56.69% in 60 days, compared with EOG Resources' 45.49% gain.
Devon Energy trades at 5.14x EV/EBITDA and rose 40.7% in six months, topping EOG Resources.
Devon's shares have gained 40.7% in the past six months compared with EOG Resources' rally of 24.7%.
The companies operating in the Zacks Oil and Gas Exploration and Production – United States industry play a critical role in the nation's energy landscape. It involves identifying oil and gas reserves beneath the earth’s surface or underwater, drilling wells and extracting hydrocarbons for further processing and distribution. The United States ranks among the top global producers, with major output coming from regions like the Permian Basin, Eagle Ford, Bakken Formation and the Gulf of Mexico. Advances in technologies such as hydraulic fracturing and horizontal drilling have significantly increased production, helping reduce reliance on imported energy.
Let’s focus on companies like Devon Energy Corporation (DVN - Free Report) and EOG Resources (EOG - Free Report) , which stand out for their robust operations and strong presence across major American basins. Both stocks gained from the increase in commodity prices due to the Middle East crisis.
Devon Energy is a leading U.S. producer with a diversified asset base and disciplined capital allocation strategy. The company generates strong free cash flow and prioritizes shareholder returns through variable dividends and share repurchases. Supported by a low-cost structure, solid balance sheet and efficient operations, it is well positioned to benefit from ongoing hydrocarbon demand. Its investments in technology and emissions reduction also highlight a growing focus on ESG alignment.
EOG Resources is a highly efficient and technologically advanced U.S. shale producer with premium, low-decline assets in key regions. The company delivers strong free cash flow across commodity cycles through disciplined capital allocation and superior well productivity. Supported by a solid balance sheet, EOG Resources maintains consistent shareholder returns, while its focus on innovation, cost control and emissions reduction strengthens the long-term outlook.
Both Devon Energy and EOG Resources are prominent players in the oil and gas industry. Let’s take a closer look at their fundamentals to determine which stock presents a more compelling investment opportunity for investors.
DVN & EOG’s Earnings Growth Projections
The Zacks Consensus Estimate for Devon Energy’s 2026 earnings per share indicates an increase of 56.69% in the past 60 days. Long-term (three to five years) earnings growth per share is pegged at 11.22%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for EOG Resources’ 2026 earnings per share indicates an increase of 46.04% in the past 60 days. Long-term earnings growth per share is pegged at 3.73%.
Image Source: Zacks Investment Research
Return on Equity
Return on Equity (“ROE”) is an essential financial indicator that evaluates a company’s efficiency in generating profits from the equity invested by its shareholders. It demonstrates how well management is utilizing the capital provided to increase earnings and deliver value.
DVN’s current ROE is 16.28% compared with EOG’s 18.67%. Both outperform the industry’s ROE of 15.23%.
Image Source: Zacks Investment Research
Debt to Capital
The Oil and Gas industry is a capital-intensive industry and the companies operating in this space often borrow funds to run their operations.
Devon Energy’s debt to capital currently stands at 35.08% compared with EOG Resources’ 21.01%. It shows EOG is successfully running its operations utilizing lesser debts compared with DVN.
Image Source: Zacks Investment Research
Valuation
Devon Energy currently appears to be cheaper compared with EOG Resources on trailing 12-month Enterprise Value/Earnings before Interest Tax Depreciation and Amortization (EV/EBITDA).
Devon Energy is currently trading at 5.14X, while EOG is trading at 6.61X, compared with the industry’s 11.54X.
Image Source: Zacks Investment Research
Capital Expenditure Plan
Capital expenditure plays a crucial role in the oil and gas sector, as it supports exploration, development and upkeep of energy assets that are vital for sustaining long-term production and revenue growth. These companies also allocate capital toward infrastructure upgrades and advanced technologies to enhance efficiency and minimize environmental impact.
Devon Energy plans to invest in the range of $3.5-$3.7 billion in 2026 and has been making strategic investments to upgrade and expand assets.
EOG Resources’ 2026 capital expenditures are projected to be $6.5 billion. This estimate covers exploration and development drilling, facilities, leasehold acquisitions, capitalized interest, dry hole costs and other property, plant and equipment.
Price Performance
Devon Energy’s shares have gained 40.7% in the past six months compared with EOG Resources’ 24.7% rise and the industry’s 21.4% rally.
Price Performance (Six Months)
Image Source: Zacks Investment Research
Conclusion
Devon Energy has a multi-basin portfolio and focuses on domestic high-margin assets that hold significant long-term growth potential. From its domestically focused assets, Devon Energy gains from established supply chains, lower transportation costs and a stable regulatory environment. While, EOG Resources’ extensive reach to key shale resources will support its long-term production growth. Both companies are strong performers in the oil and gas industry.
Devon Energy and EOG Resources currently carry a Zacks Rank #3 (Hold) each. But based on the above discussion, Devon Energy has an edge over EOG. Devon Energy’s multi-basin domestic assets, cheaper valuation, better earnings estimate movement and stronger price performance prevail over EOG Resources.
View the Zacks #1 Rank List
Image: Bigstock
Devon Energy vs. EOG: Which Shale Stock Offers More Upside in 2026?
Key Takeaways
The companies operating in the Zacks Oil and Gas Exploration and Production – United States industry play a critical role in the nation's energy landscape. It involves identifying oil and gas reserves beneath the earth’s surface or underwater, drilling wells and extracting hydrocarbons for further processing and distribution. The United States ranks among the top global producers, with major output coming from regions like the Permian Basin, Eagle Ford, Bakken Formation and the Gulf of Mexico. Advances in technologies such as hydraulic fracturing and horizontal drilling have significantly increased production, helping reduce reliance on imported energy.
Let’s focus on companies like Devon Energy Corporation (DVN - Free Report) and EOG Resources (EOG - Free Report) , which stand out for their robust operations and strong presence across major American basins. Both stocks gained from the increase in commodity prices due to the Middle East crisis.
Devon Energy is a leading U.S. producer with a diversified asset base and disciplined capital allocation strategy. The company generates strong free cash flow and prioritizes shareholder returns through variable dividends and share repurchases. Supported by a low-cost structure, solid balance sheet and efficient operations, it is well positioned to benefit from ongoing hydrocarbon demand. Its investments in technology and emissions reduction also highlight a growing focus on ESG alignment.
EOG Resources is a highly efficient and technologically advanced U.S. shale producer with premium, low-decline assets in key regions. The company delivers strong free cash flow across commodity cycles through disciplined capital allocation and superior well productivity. Supported by a solid balance sheet, EOG Resources maintains consistent shareholder returns, while its focus on innovation, cost control and emissions reduction strengthens the long-term outlook.
Both Devon Energy and EOG Resources are prominent players in the oil and gas industry. Let’s take a closer look at their fundamentals to determine which stock presents a more compelling investment opportunity for investors.
DVN & EOG’s Earnings Growth Projections
The Zacks Consensus Estimate for Devon Energy’s 2026 earnings per share indicates an increase of 56.69% in the past 60 days. Long-term (three to five years) earnings growth per share is pegged at 11.22%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for EOG Resources’ 2026 earnings per share indicates an increase of 46.04% in the past 60 days. Long-term earnings growth per share is pegged at 3.73%.
Image Source: Zacks Investment Research
Return on Equity
Return on Equity (“ROE”) is an essential financial indicator that evaluates a company’s efficiency in generating profits from the equity invested by its shareholders. It demonstrates how well management is utilizing the capital provided to increase earnings and deliver value.
DVN’s current ROE is 16.28% compared with EOG’s 18.67%. Both outperform the industry’s ROE of 15.23%.
Image Source: Zacks Investment Research
Debt to Capital
The Oil and Gas industry is a capital-intensive industry and the companies operating in this space often borrow funds to run their operations.
Devon Energy’s debt to capital currently stands at 35.08% compared with EOG Resources’ 21.01%. It shows EOG is successfully running its operations utilizing lesser debts compared with DVN.
Image Source: Zacks Investment Research
Valuation
Devon Energy currently appears to be cheaper compared with EOG Resources on trailing 12-month Enterprise Value/Earnings before Interest Tax Depreciation and Amortization (EV/EBITDA).
Devon Energy is currently trading at 5.14X, while EOG is trading at 6.61X, compared with the industry’s 11.54X.
Image Source: Zacks Investment Research
Capital Expenditure Plan
Capital expenditure plays a crucial role in the oil and gas sector, as it supports exploration, development and upkeep of energy assets that are vital for sustaining long-term production and revenue growth. These companies also allocate capital toward infrastructure upgrades and advanced technologies to enhance efficiency and minimize environmental impact.
Devon Energy plans to invest in the range of $3.5-$3.7 billion in 2026 and has been making strategic investments to upgrade and expand assets.
EOG Resources’ 2026 capital expenditures are projected to be $6.5 billion. This estimate covers exploration and development drilling, facilities, leasehold acquisitions, capitalized interest, dry hole costs and other property, plant and equipment.
Price Performance
Devon Energy’s shares have gained 40.7% in the past six months compared with EOG Resources’ 24.7% rise and the industry’s 21.4% rally.
Price Performance (Six Months)
Image Source: Zacks Investment Research
Conclusion
Devon Energy has a multi-basin portfolio and focuses on domestic high-margin assets that hold significant long-term growth potential. From its domestically focused assets, Devon Energy gains from established supply chains, lower transportation costs and a stable regulatory environment. While, EOG Resources’ extensive reach to key shale resources will support its long-term production growth. Both companies are strong performers in the oil and gas industry.
Devon Energy and EOG Resources currently carry a Zacks Rank #3 (Hold) each. But based on the above discussion, Devon Energy has an edge over EOG. Devon Energy’s multi-basin domestic assets, cheaper valuation, better earnings estimate movement and stronger price performance prevail over EOG Resources.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.