Devon Energy (DVN) is expected to reiterate its initial 2025 outlook when it reports Q4 results, UBS Securities said in an earnings preview emailed Thursday.

The company had outlined a 2025 production target of 800,000 barrels of oil equivalent per day, including 380,000 barrels of oil per day, on a $4.1 billion budget during its Q3 report.

"We model ~380mbopd of 1Q25 oil volumes, staying consistent through the year and a more level-loaded capital program vs. prior years," the firm wrote.

For Q4 2024, UBS forecasts cash flow per share of $2.61, slightly below the street estimate of $2.66, with total production expected at 826,000 mboepd, near the upper end of the company's guidance range of 811,000 to 830,000 mboepd.

The firm projects $375 million in share buybacks for Q4, reflecting a continued emphasis on repurchases over special dividends. For 2025, UBS anticipates Devon Energy will allocate around $1.55 billion to buybacks, up from $1.13 billion in 2024.

The firm also expects the company to pay off its $485 million in senior notes in Q4 and build cash to redeem its $1 billion term loan in Q3 of 2026.

UBS has a neutral rating on the stock with a price target of $47.

Price: 38.62, Change: +0.19, Percent Change: +0.48