Devon Energy (DVN) Update - Aug 14

[dan_s]

In July Devon announced an agreement to Grayson Mill Energy for $5 billion. The highly accretive transaction is a strong strategic fit that should push Devon's production over 800,000 Boepd in Q4 2024; setting up 2025 to be one of the best years in Devon's history.

Read this: https://finance.yahoo.com/news/fueled-5-billion-acquisition-oil-113600384.html

After the acquisition closes, Devon's production mix should be approximately 49% crude oil, 26% natural gas & 25% NGLs. < Devon's 2024 revenues are heavily weighted to liquid sales. If WTI averages $80/bbl in 2025, Devon's operating cash flow should exceed $2 billion per quarter.

Devon pays base + variable dividends that should be over $2.00 the next twelve months for yield over 4.5%. Devon also has an aggressive stock buyback underway.

I will finish my review of our updated profile on Devon today.