Devon Energy (DVN)

[dan_s]

Devon Energy continues to transform itself and is now a much stronger and more focused company than it was last year. Only a year ago the company lacked focus and direction but since then the company has made major strategic decisions which have resulted in continued improvement in asset quality.

In a major shift in its strategy, Devon Energy decided last year to divest its natural gas holdings and refocus on more profitable North American crude oil assets. As part of its transformation strategy, the company sold the bulk of its Canadian conventional assets to Canadian Natural Resources (NYSE: CNQ ) for $2.8 billion earlier this year, and most recently Devon agreed to sell its oil and natural gas producing acreage across six U.S. states to Linn Energy for $3.2 billion.

http://www.fool.com/investing/general/2 ... eal-f.aspx

[dan_s]

Analysis of the LINE / DVN deal:

http://www.fool.com/investing/general/2 ... ansac.aspx

IMO this is a WIN / WIN deal, a great fit for both companies. If LINE can pull off the Section 1031 deal to make the sale of their Granite Wash assets tax free, it will be even better for LINE unitholders.

I think DVN is worth $100/share and LINE is a BUY up to $35/unit, with a six month target of $40/unit. You can find my recent profile on LINE under the MLP tab.

[llm_cfp]

what is the next catalyst for dvn shares?

[dan_s]

It may take Q3 results for Wall Street to figure this one out. Their 9/30/2014 balance sheet is going to look very good and liquids production will be ramping up.

See my forecast model under the Sweet 16 tab. Check out the production growth and the move to more liquids.