Devon (DVN) Valuation Update - May 19

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Devon (DVN) Valuation Update - May 19

Post by dan_s »

I have updated my forecast/valuation model for Devon and posted it to the EPG website.
My valuation is lowered by $1 to $67.

At the time of this post DVN was trading at $49.22

TipRanks: "In the last 3 months, 19 ranked analysts set 12-month price targets for DVN. The average price target among the analysts is $64.60. Since Devon released Q1 results and updated guidance, 9 highly respected energy sector analysts have adjusted their price targets to $52 (Wells Fargo) to $82 (Piper Sandler). Those 9 price targets average $66.56 per share."

Per Devon, they are going to report a big increase in their NGLs production from Q1 to Q2. None of their NGLs are hedged.

All of the large-caps in our High Yield Income Portfolio (CTRA, DVN, FANG, PDCE and PXD) are aggressively buying back their stock. Several have reduced their variable dividends and increased their stock buybacks. Obviously, they all believe their stock prices are way below fair value.

Devon is a rock-solid company with lots of running room and it looks like it will pay one of the highest dividends in this group. (~7.4% annual yield).
Dan Steffens
Energy Prospectus Group
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