Devon Energy (DVN) Valuation Raised - May 4

[dan_s]

At the time of this post, DVN was trading at $64.56.

I have updated my forecast/valuation model for Devon's strong Q1 results and I have raised my valuation by $7 to $82 per share.

Devon was moved from our Sweet 16 to our High Yield Income Portfolio.
> First-quarter dividend payout increases 27 percent to a record high of $1.27 per share < Annualized yield of ~7.9%
> Board expanded share-repurchase authorization by 25 percent to $2.0 billion
> Share-repurchase program to date has retired 19.1 million shares at a total cost of $891 million

Based on my forecast, Devon's fixed + variable dividend will be increasing each quarter this year.

My updated forecast model has been posted to the EPG website. You can view it from the home page.