Devon Energy (DVN)

[dan_s]

Matthew DiLallo, The Motley Fool
Motley FoolJanuary 10, 2018

" Devon Energy also focused its efforts during the downturn on repositioning its portfolio to generate more cash at lower crude prices. The company sold several higher-cost assets while also strengthening its core position in the high-return STACK shale play of Oklahoma. As a result, the company expects to generate $2 billion to $2.5 billion in cash flow this year, which will give it the money to increase output from the STACK as well as the Delaware Basin by a jaw-dropping 30%. That growth is part of Devon's 2020 Vision, which is that the company will be even more focused on returns while it builds a "fortress balance sheet." But since it anticipated that it could fuel its vision at $50 oil, it would generate more cash than it needs this year if crude stays in the $60s, which might enable it to join Anadarko in buying back its beaten-down stock."

Based on my forecast/valuation model (updated 12/30/2017 assuming $50 WTI for all future periods), Devon should generate cash flow from operations as follows:
2017 = $3.2 Billion
2018 = $3.5 Billion
2019 = $4.2 Billion

They have announced a D&C capital program for 2018 of $2.5 Billion.