Devon Energy (DVN) Update - Sept 8

Devon Energy (DVN) Update - Sept 8

Postby dan_s » Thu Sep 08, 2022 6:44 pm

Note rec'd from Vincent Lovaglio at Mizuho Securities on 9-8-2022

DVN announced earlier this week that it has entered an LNG partnership with Delfin Midstream
including a Heads of Agreement for 1Mtpa in Delfin's first floating LNG vessel and ability to add
an additional 1Mtpa in the project or future vessels. Delfin holds all necessary permitting for its
first project and seems poised for YE FID. We view the announcement positively for DVN, similar
to COP's entry into Port Arthur announced mid-July, with excess cash flow today redeployed into
enhancing long-term through-cycle margins.
We maintain our Buy rating on DVN with a price target of $91.00

MY TAKE: More of the "Gassers" are making deals directly with the LNG export companies, so they can get higher international prices for their gas. I do know that Comstock Resources (CRK) is talking to the LNG export companies.
Dan Steffens
Energy Prospectus Group
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Re: Devon Energy (DVN) Update - Sept 8

Postby SergioSays » Fri Sep 09, 2022 1:24 pm

very interesting, but I don't understand why the LNG midstreamers would make such a deal--I guess they need to term up supply in order to finance their projects, or is DVN committing funds to Delfin for project construction?
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Re: Devon Energy (DVN) Update - Sept 8

Postby SergioSays » Fri Sep 09, 2022 1:33 pm

nevermind. I looked up the press release, as DVN is investing in an equity stake in the project
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