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dvn
Posted: Mon May 23, 2016 1:30 pm
by mkarpoff
I just read that dvn closed on the sale of a major non-core asset in OK to aep, which brings their sales close to their $3bb non-core sales goal. Does this in any way increase (or decrease) your value for the company, or does it simply make the balance sheet better after the Felix acquisition? Thx.
Re: dvn
Posted: Mon May 23, 2016 2:53 pm
by dan_s
My valuation of DVN assumes their asset sales bring in $2 Billion. If they raise $3 Billion, it will make the debt holders very happy.
For the few of you not familiar with Devon Energy, it is a world class upstream company. They may have the best acreage in the STACK play, which BTW is getting better and better as the big companies (CLR, DVN, NFX and XEC) figure out the best completion methods. Devon is "in transition". When all of the asset sales close and if oil & gas prices are close to my forecasts, Devon has a shot at $50/share by year-end.
NFX is my Top Pick for STACK because it is the most highly leveraged to the play.
We will publish an updated profile on Devon late this week.