Devon Energy (DVN)

dan_s · Post by **dan_s** » Wed May 04, 2016 5:08 pm

I have updated my forecast model for Devon and it will be available on the EPG website on 5/5.

This one definitely takes some faith. If they are able to close the asset sales that are working today, they will clean up the balance sheet and be in position to rapidly increase production and proven reserves from STACK in 2017. If not, they will be fighting off the bankers for awhile.

Increase production guidance and declining expenses are why I have increased my valuation $3.00/share to $43.50. This compares to First Call's Price Target of $34.95.

This one does have more risk than the other Sweet 16 companies.