Devon Energy is being dropped from Sweet 16

[dan_s]

I like everything that Devon Energy is doing and my valuation has increased to $52.00. If you like "Special Situations", then DVN may be a good fit for you. Often when the "noise" clears up, a company of this size and quality can really take off.

However, it is no longer a growth company, so it does not fit in the Sweet 16 "Growth Portfolio".

Devon wants to sell assets to raise $5 Billion that will be used for debt reduction and stock buybacks. This is a good idea, but it makes it almost impossible for me to forecast until all of the transactions close. My 2019 forecast does not include the impact of sales which have not been announced.

This will create two openings in the Sweet 16 because RSP Permian is being gobbled up by Concho (CXO).

Two of the companies in our Small-Cap Growth Portfolio will be "promoted" to the Sweet 16.

My updated forecast/valuation model for Devon will be posted to the EPG website this afternoon. Devon may come back into the Sweet 16 next year or in 2020 because they have some very good leasehold in STACK and in the Permian Basin.