Devon Energy (DVN) Update - Sept 21

[dan_s]

DVN is trading this morning for $28.13. I am raising my current valuation $2 to $50 per share.
TipRanks: "In the last 3 months, 14 ranked analysts set 12-month price targets for DVN. The average price target among the analysts is $38.64." < Most of the analysts' current price targets do not included the recent spike in natural gas and NGL prices.

9/20/2021: Wells Fargo analyst Nitin Kumar raised the price target on Devon Energy (NYSE: DVN) to $39.00 (from $38.00) while maintaining a Overweight rating.

Devon's merger with WPX Energy closed 1/7/2021 and the full benefit of the merger will be seen in 2H 2021. Add DVN now before the Wall Street Gang figures this out.

Today, Devon is producing approximately 570,000 Boe per day, 51.5% crude oil, 25.5% natural gas and 23.0% NGLs. They are going to get a BIG revenue boost in Q4 because over 50% if their natural gas is unhedged and over 90% of their NGLs are unhedged. The revenue boost will be even larger in Q1 2022 because ~90% of their ngas will be unhedged.

Devon is on pace to generate over $2.8 Billon of free cash flow from operations this year and over $4.0 Billion of FCF in 2022 if their realized prices are $3.40/mcf for natural gas, $25.00/bbl for NGLs and $65.00/bbl for crude oil.