ExxonMobil (NYSE: XOM) is a fine and worthy dividend-stock candidate for investors looking for exposure to oil, but it doesn't trade at Devon Energy's (NYSE: DVN) cash-flow valuation. Moreover, while ExxonMobil's stock is up almost 19% this year, Devon's stock is flat this year and presents an excellent value for investors. Here's why.

Devon Energy's recent second-quarter results contained several positives that helped confirm the investment case for the stock, including the company's upgraded production target. In a year when management decided to focus investment in its core assets in the Delaware Basin, it's reasonable to expect an improvement in well productivity and total production. Indeed, management started the year predicting a 10% improvement in well productivity and the production of 650,000 barrels of oil equivalent per day (Boe/d) in 2024.

The good news is that management reaffirmed the target for well-productivity improvement and, for the second time this year, upgraded its full-year production target to a new range of 677,000 Boe/d to 688,000 Boe/d -- a 5% upgrade from the original target. It's an even better result when considering that the price of oil started the year at around $70 a barrel but has spent most of it above $75 a barrel.

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Source Fool.com