Devon Energy (DVN) Update - Dec 28

[dan_s]

Note from Truist Financial 12/28/2021

Devon Energy Corporation (DVN, $44.61, Buy)
Meeting Highlights Shareholder Returns Not Butterfly Chases

"We met with Devon recently with the company emphasizing continued FCF maximization and shareholder returns with a belief that the market will continue to reward companies based primarily on these metrics in contrast to others that feel the trend is relatively transient in nature. We believe DVN has struck the right balance with generalist investors as demonstrated by its #1 YTD ranking in the S&P 500. We remain confident in the company’s 20%+ FCF yield next year, which is likely to continue to bring more investors into the name."
- Neal Dingmann

DVN will be moving from the Sweet 16 to our High Yield Income Portfolio on 1-1-2022

[mkarpoff]

If my math is correct (no guarantees), the dvn divvy I just received pro-rates to 7.6% yield. Pretty good, I would say.

[Fraser921]

Devon rec'd a buy recommendation on CNBC yesterday

[dan_s]

Neal Dingmann at Truist Financial raised is price target for DVN to $60/share, which is my current valuation.

My guess is that DVN and PXD are still not on the radar screens of many fund managers or investors that invest primarily for dividend yield.

Based on my forecast, Devon will be generating over $1.6 Billion of operating cash flow PER QUARTER beginning with Q4 2021.