Devon 4th Quarter report

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sansonetx
Posts: 30
Joined: Sat May 15, 2010 9:23 am

Devon 4th Quarter report

Post by sansonetx »

Dan,when you get time, would you offer your expertise concerning the 4th quarter report by Devon.Thanks
dan_s
Posts: 34465
Joined: Fri Apr 23, 2010 8:22 am

Re: Devon 4th Quarter report

Post by dan_s »

Devon is no longer in the Sweet 16, so I don't follow it closely. I will try to take a look when I have time, but now I am up to my gills in updates for all of our model portfolio companies.

Devon is a company "in transition", but it has a lot of high quality assets. They have some very good assets in Central Oklahoma (SCOOP & STACK).
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34465
Joined: Fri Apr 23, 2010 8:22 am

Re: Devon 4th Quarter report

Post by dan_s »

Note from Stifel that I received on 2/20/2019

Devon Energy Corporation (DVN, $28.31, Buy; Target $47.00) - The New Devon will be a high growth, shareholder-friendly company with encouraging 3-year targets - Derrick Whitfield - We view the release and strategic update as positive. The positives include: i) the announcement of management’s intent to sell Devon’s Barnett and Canada assets, ii) a total equivalent and oil production beat for the quarter on in-line capex, iii) strong implied capital efficiency metrics with 2019 oil production 2.3% below consensus on capex 11.4% below consensus, iv) the announcement of new 3-year performance targets including a 12-17% oil CAGR, and v) the advancement of shareholder-friend initiatives through a 13% quarterly dividend increase and a $1B increase to the share repurchase authorization. The negatives include: i) a disappointing type curve revision in the STACK on wider-spaced wells and ii) a lower than expected Q119 oil production guide (4.2% below consensus). Net-net, the transition to the “New Devon” with a high-growth asset base and shareholder-friendly programs should cause investors to look beyond the STACK type curve revision.
Dan Steffens
Energy Prospectus Group
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