"Great natural gas portfolio. It's not necessarily going to be linked to the international, but there's going to be shortage of natural gas. We all realize that now they're doing a good merger. I hesitate to recommend any oil and gas after this big run, but if it comes in, I'm going to say yes."
"The case for tightening natural gas supply is not hard to find right now. Henry Hub prices spiked to $13.80 per MMBtu the week of January 30, 2026, the highest level in the dataset, before pulling back sharply to $2.99 as of March 6, 2026. That kind of volatility is not noise. It reflects a market that has very little buffer when demand surges."
"Devon is essentially pre-selling into the shortage Cramer is describing. The company signed two gas marketing agreements in 2025 that don't kick in until 2028: an LNG export contract for 50 MMcf/d over a 10-year term with international pricing exposure, and a supply agreement for 65 MMcf/d over seven years tied to ERCOT West pricing for a proposed 1,350 MW power plant."
Devon Energy presents a compelling investment case based on structural natural gas supply constraints. Henry Hub prices spiked to $13.80 per MMBtu in January 2026, reflecting tight market conditions with minimal buffer capacity. Demand is building from AI data centers requiring continuous power and expanding global LNG export capacity. Devon has strategically positioned itself by signing two gas marketing agreements in 2025 that activate in 2028: a 50 MMcf/d LNG export contract and a 65 MMcf/d supply agreement for a proposed power plant. However, the stock has surged 24% year-to-date and 35% over the past year, trading at $45 versus its 200-day moving average of $35.71, prompting caution about chasing momentum in the energy sector.
#natural-gas-markets #devon-energy-stock-analysis #energy-sector-valuation #lng-supply-shortage #ai-data-center-demand
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