Devon Energy (DVN)

[dan_s]

I have finished updating the Devon profile. It will be sent out late today.

Shortly after each of our model portfolio companies releases quarterly earnings I update my forecast/valuation models. A few weeks later, the profiles (drafted by our MBA Student Interns) are updated. During this process, I go over my forecast/valuation models carefully and adjust my stock valuations accordingly. Obviously, the valuations are highly dependent on accurate production forecasts and commodity prices. Only a few companies have provided production guidance for 2017, so the production volumes that I use for next year are "SWAGs" based on the limited information I have. I do now have fairly accurate exit rates for 2016 for all of the companies and most of them have given some guidance on next year's capex programs.

Devon has said that post their $3.2 Billion non-core assets sales they are committed to pursue double-digit production growth. They are getting fantastic results in STACK and the Delaware Basin where they have many years of running room.

Devon now looks like a "Top Pick for 2017". My current valuation is $63.00/share, compared to First Call's price target of $49.28. < Note that when companies go through a big transition period like Devon has just concluded, the Wall Street Gang has a more difficult time forecasting. Devon's Q4 results will be post asset sales (except for the Access Pipeline sale), so it will give analysts a good starting point to forecast from, plus I am sure Devon will provide 2017 guidance on their Q4 earnings call.

[dan_s]

Devon Energy Corp. (NYSE: DVN) today announced that its board of directors has declared a quarterly cash dividend on Devon's common stock for the first quarter of 2017. The dividend is payable on March 31, 2017, at a rate of $0.06 per share based on a record date of March 15, 2017.