Devon Energy (DVN) Valuation Update - May 4

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dan_s
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Joined: Fri Apr 23, 2010 8:22 am

Devon Energy (DVN) Valuation Update - May 4

Post by dan_s »

I have updated my forecast/valuation model for Devon Energy, one of the large-caps in our Sweet 16 Growth Portfolio.

Devon's 2024 capital program is focused on increasing oil production and holding overall production relatively flat. Q1 2024 production exceeded the Company's guidance, so I'm now forecasting ~2% year-over-year production growth in 2024, compared to 7.8% YOY production growth in 2023.

70% of 2024 free cash flow will be paid out as dividends and stock buybacks.

Based on Devon's strong first quarter results and increased production guidance, my valuation of DVN increases by $4 to $63/share.
Dan Steffens
Energy Prospectus Group
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