Devon Energy (DVN) is positioned to deliver stable operations in 2026 while benefiting from improved capital efficiency and ongoing optimization, RBC Capital Markets said Tuesday in a report.

The company plans to maintain consistent activity levels next year, with early guidance showing slightly stronger-than-expected production for similar capital spending, the report said.

RBC sees potential outperformance driven by Devon's strong recent results and continued leasing momentum in the Delaware Permian.

Devon is also working to extend its core inventory through lease purchases and plans to take part in upcoming state and federal sales, RBC said.

The company expects an additional $200 million in optimization benefits by year-end, reaching over 60% of its $1 billion target, RBC said.

Further upside could materialize if Devon raises that target with 2026 guidance early next year, the report said.

RBC maintained its sector perform rating on Devon stock with a $42 price target.

Price: 35.06, Change: -0.10, Percent Change: -0.30