Energy Prospectus

Beyond Pioneer Natural Resources: 3 Top Oil Stocks to Buy After ExxonMobil's $60 Billion Acquisition.
By Matthew DiLallo – Dec 5, 2023 at 7:46AM for The Motley Fool
KEY POINTS
Diamondback Energy (FANG) is a pure-play Permian producer.
Devon Energy (DVN) has a meaningful position on the Delaware side of the Permian.
EOG Resources (EOG) has lots of high-return drilling locations left in the Permian.

Full article: https://finance.yahoo.com/m/a23530ec-3491-32c2-b3f6-acd12f59fcd4/beyond-pioneer-natural.html

In my opinion, the best way to navigate through this period of volatile oil & gas prices is to own high-quality upstream companies with super strong balance sheets, generate lots of free cash flow and have lots of high-quality development drilling inventory ("Running Room"). FANG DVN and EOG are all strong large-caps that very nice "Fixed + Variable" dividends. They also have active Stock Buybacks underway, which help to support the share prices.

We will be publishing an updated profile on Devon Energy today.

I have posted my update profile on Devon Energy to the EPG website.

Return of Capital
• Based on the third-quarter financial performance, Devon declared a fixed-plus-variable dividend of $0.77 per share, an increase of 57 percent from the second quarter of 2023. The dividend is payable on December 29, 2023 to shareholders of record at the close of business on December 15, 2023.

• The Company also has returned capital to shareholders through its ongoing $3.0 billion share-repurchase program. Since commencement of the program, Devon has repurchased approximately 40 million shares, at a total cost of $2.1 billion. With this repurchase program, the company is on track to decrease its outstanding share count by up to 9 percent. < Outstanding common stock should decline from 663 million at the end of 2021 to under 605 million by the end of 2024.


I now expect Devon's 2024 quarterly dividends to total more than $3.00/share for annualized yield of more than 6.75% based on the share price at the time of this post.