Oil Stock Taps 17-Month High After Q4 Beat

Devon Energy Corp (NYSE:DVN) shares are up 1.1% to trade at $44.51, after the oil-and-gas company reported fourth quarter earnings of 82 cents per share on $4.12 billion in revenue, both of which surpassed analyst expectations. Meanwhile, its all-stock merger with Coterra reflects ongoing consolidation and signals growth potential ahead.

Analysts were already bullish heading into the report, with 23 of the 29 firms carrying a "buy" or better rating. However, DVN's 12-month consensus target price of $47.86 is only a 6.3% premium to current levels, so price-target hikes could keep the wind at the equity's back..

The oil stock earlier touched a 17-month high of $45.32, finding support at its 10-day moving average. After plunging in April, shares have since rebounded sharply and now sit 76% above those lows. 

Options appear attractively priced. Devon's Schaeffer's Volatility Index (SVI) of 37% that sits higher than just 13% of all other readings from the past year, implying that near-term option traders are pricing in relatively low volatility expectations.