Devon will release Q2 results on Monday, August 1 after the markets close. DVN has been moved from the Sweet 16 to our High Yield Income Portfolio because it now pays quarterly "Fixed + Variable" dividend that should total more than $6.00/share for 2022. Their Q1 dividend was $1.27. Based on my forecast the Q2 variable portion will be much higher.
The acquisition below will increase my forecasts for 2H 2022 and 2023.
OKLAHOMA CITY, July 21, 2022 (GLOBE NEWSWIRE) -- Devon Energy Corp. (NYSE: DVN) today announced that it has completed its previously announced acquisition of the leasehold interest and related assets of RimRock Oil and Gas, LP in the Williston Basin for a total cash consideration of $865 million, less purchase price adjustments.
This acquisition adds a contiguous position of 38,000 net acres (88% working interest) directly offsetting and overlapping Devon's existing position. Production from the acquired assets are expected to increase to an average of 20,000 Boe per day over the next year. The transaction also adds more than 100 highly economic undrilled inventory locations, positioning the company's Williston Basin assets to maintain high-margin production and strong cash flow for several years.
ABOUT DEVON ENERGY
Devon Energy is a leading oil and gas producer in the U.S. with a premier multi-basin portfolio headlined by a world-class acreage position in the Delaware Basin. Devon's disciplined cash-return business model is designed to achieve strong returns, generate free cash flow and return capital to shareholders, while focusing on safe and sustainable operations. For more information, please visit www.devonenergy.com.
Devon Energy (DVN) for Growth + Income: July 29
Devon Energy (DVN) for Growth + Income: July 29
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Devon Energy (DVN) for Growth + Income: July 29
Most recent analyst's report was 7/26/2022: "Raymond James analyst John Freeman maintained a Buy rating on Devon Energy (DVN) today and set a price target of $80.00."
TipRanks: "In the last 3 months, 17 ranked analysts set 12-month price targets for DVN. The average price target among the analysts is $80.61. The 17 price targets range from $61 to $115."
DVN closed on July 29 at $62.85.
My Pre-Release valuation is $89/share.
I expect their Q2 dividend to be $1.50 to $1.70, so annualized dividend yield s/b over 9%.
TipRanks: "In the last 3 months, 17 ranked analysts set 12-month price targets for DVN. The average price target among the analysts is $80.61. The 17 price targets range from $61 to $115."
DVN closed on July 29 at $62.85.
My Pre-Release valuation is $89/share.
I expect their Q2 dividend to be $1.50 to $1.70, so annualized dividend yield s/b over 9%.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group