Devon Energy (DVN) Valuation Update - Feb 28

[dan_s]

At the time of this post DVN was trading at $44.05. TipRanks' price target is $52.78.

I have updated my forecast/valuation model for Q4 2023 actual results and updated 2024 guidance. My valuation stays at $56/share.

Due to bad weather in January, Devon's Q1 production will be down to 640,000 Boepd and then drift up to ~660,000 Boepd by year.
Devon pays a Fixed + Variable dividend for annual yield of ~5.5% and they are buying back shares at a decent clip.

I like Devon's production mix of 48.5% oil, 25.0% NGLs and 26.5% Ngas.

Devon should generate about $3 billion of free cash flow in 2024.