Devon Energy delivered a mixed performance in the last quarter of 2022. The company managed to surpass the revenue expectations of Wall Street but its earnings were well below par. The management made significant strides to improve the breadth and quality of their asset portfolio. Production per share increased by 9% over the previous year. This expansion was brought about by a combination of accretive acquisitions, timely stock buybacks, and significant oil output. Besides that, their simplified cost structure benefited from favorable material prices, increasing per-unit margins year over year. Around 60% of its annual capital budget is expected to be spent on the Delaware Basin, making it the most funded asset in its portfolio. Southern Lea and Eddy Counties in the Stateline region of Texas will receive the majority of the investment as they carry out this plan with 16 rigs across their acreage footprint. We give Devon Energy Corporation a ‘Buy’ rating with a revised 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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