Devon Energy (DVN) Update - Nov 25
Posted: Thu Nov 25, 2021 12:29 pm
I had to work on Thanksgiving because it has taken me four days to catch up to what the MBAs did while I was on vacation.
This morning I finished my review of the Devon Energy (DVN) profile.
DVN closed at $45.09 on November 24. I am raising my current valuation by $2 to $60.
TipRanks: Since November 15th six ranked analysts have updated their price targets to a range of $51 to $65 (Raymond James).
Devon recently raised their quarterly dividend to $0.84/Qtr for annualized yield of 7.4%. Based on my forecast their variable dividend will go a lot higher in 2022 because with realized prices of $70/bbl oil and $3.70/mcf (both adjusted for their hedges), Devon should generate over $5 billion of free cash flow from operations next year.
I have been following Devon for over a decade: Devon's merger with WPX Energy may be the best deal I've ever seen. It has already exceeded all expectations.
The profile and my updated forecast will be posted to the EPG website late today. If you are not familiar with this rock solid upstream company, I urge you to read it carefully and make DVN one of your Core Holdings for growth + high dividend yield.
I am still waiting on one Sweet 16 profile that Nataly should finish tomorrow (Earthstone Energy). Nataly is one of our "Super Stars" from SMU. She is a lawyer with an MBA and the mother of three beautiful girls. Our four MBAs give me hope for America.
This morning I finished my review of the Devon Energy (DVN) profile.
DVN closed at $45.09 on November 24. I am raising my current valuation by $2 to $60.
TipRanks: Since November 15th six ranked analysts have updated their price targets to a range of $51 to $65 (Raymond James).
Devon recently raised their quarterly dividend to $0.84/Qtr for annualized yield of 7.4%. Based on my forecast their variable dividend will go a lot higher in 2022 because with realized prices of $70/bbl oil and $3.70/mcf (both adjusted for their hedges), Devon should generate over $5 billion of free cash flow from operations next year.
I have been following Devon for over a decade: Devon's merger with WPX Energy may be the best deal I've ever seen. It has already exceeded all expectations.
The profile and my updated forecast will be posted to the EPG website late today. If you are not familiar with this rock solid upstream company, I urge you to read it carefully and make DVN one of your Core Holdings for growth + high dividend yield.
I am still waiting on one Sweet 16 profile that Nataly should finish tomorrow (Earthstone Energy). Nataly is one of our "Super Stars" from SMU. She is a lawyer with an MBA and the mother of three beautiful girls. Our four MBAs give me hope for America.