Devon Energy (DVN) Valuation Update - Nov 5

[dan_s]

DVN closed at $39.33 on November 5th. Their splid Q3 results and increase producion guidance should push the share price higher.

TipRanks before the Q3 earnings release: "In the last 3 months, 18 ranked analysts set 12-month price targets for DVN. The average price target among the analysts is $51.24. The 18 price targets range from $43 to $64." < I expect some upgrades tomorrow after their conference call.

I have updated my forecast/valuation model for Devon and it will be posted to the EPG website tomorrow morning.

My valuation increases by $2 to $57 per share, primarily due to their higher production guidance for Q4 of 820,000 Boepd, which also pushed up my 2025 production forecast to 830,000 Boepd.

Devon's operating cash flow should be $6.6 to $6.7 billion in 2024, then increase to approximately $8.0 billion in 2025 if WTI oil averages $75/bbl next year.