Shares of oil and gas explorer Devon Energy (NYSE: DVN), LNG terminal company Tellurian (NYSEMKT: TELL), and energy services company Core Laboratories (NYSE: CLB) were rallying today, up 7.3%, 6%, and 5.5%, respectively, as of 1:45 p.m. ET on Thursday. Each of these companies plays in a different part of the energy sector, so it's no surprise their rally came in conjunction with a rise in oil and natural gas prices today, the result of an incrementally bullish report from the International Energy Agency (IEA). On Thursday, the IEA raised its oil-demand outlook for the rest of 2022, increasing its forecast by 380,000 barrels per day (bpd) to about 99.7 million bpd globally.
Devon Energy (NYSE: DVN) has become quite the dividend stock over the past year. The oil company launched the industry's first fixed-plus-variable dividend framework last year, enabling its investors to cash in on higher oil prices. Devon has since increased its base dividend twice, while growing its variable payment every quarter.
Oil and gas stocks lit up on Tuesday after crude and natural gas prices inched higher earlier in the day, but Devon Energy (NYSE: DVN) had an altogether different catalyst driving its stock price up by as much as 5.3% at its highest point in trading on Aug. 9. The upstream oil and gas company is making an acquisition that will also bring in bigger dividends for shareholders in the near future. Devon Energy will acquire Eagle Ford-focused company, Validus Energy, for $1.8 billion in cash, with the transaction expected to close in the coming weeks.