Devon Energy delivered a solid set of results, surpassing Wall Street expectations on all counts and its performance was highlighted by its Delaware-aimed operating plan, which delivered production above the guidance expectations. Margins expanded, the capital was below budget, and Devon paid record-high cash payouts to the shareholders. Important steps were taken by the management to strengthen the depth and quality of the asset portfolio. The company recently went on to acquire Eagle Ford operator, Validus Energy. The premier multi-basin portfolio positions Devon to deliver strong, repeatable results and capital efficiency. The company accomplished this with the recent acquisition of assets of RimRock in the Williston Basin. The combination of execution, asset base, and strategy has resulted in an impressive track record of value creation for the shareholders. Overall, with the low breakeven funding levels, Devon is positioned quite well to navigate the latest market volatility as well as build upon the track record to deliver good returns. We provide the stock of Devon with a ‘Hold’ rating and a revision in the target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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