Devon Energy (DVN)
Posted: Mon Mar 06, 2017 7:11 pm
I just finished my review of the profile on Devon that was worked up by one of our super star MBA students at SMU. We will be sending it out late tonight or early 3/7.
IMO Devon is grossly undervalued by the market. First Call's price target has increased by more than $5.00/share since our last profile (to over $54/share), but it definitely has more upside than that. 2016 was a "Major Transition" year for Devon. Today their balance sheet is in great shape and they have lots of running room in STACK and the Delaware Basin (over 10,000 low-risk / high-potential HZ drilling locations).
Read our profile and then go to Devon's website and go slowly through their March presentation. I think you will agree that this large-cap s/b a Top Pick for 2017.
On the last page of the profile you will find my forecast model. Take a hard look at the RED BOX that shows First Call's current operating cash flow per share estimates through 2020.
IMO Devon is grossly undervalued by the market. First Call's price target has increased by more than $5.00/share since our last profile (to over $54/share), but it definitely has more upside than that. 2016 was a "Major Transition" year for Devon. Today their balance sheet is in great shape and they have lots of running room in STACK and the Delaware Basin (over 10,000 low-risk / high-potential HZ drilling locations).
Read our profile and then go to Devon's website and go slowly through their March presentation. I think you will agree that this large-cap s/b a Top Pick for 2017.
On the last page of the profile you will find my forecast model. Take a hard look at the RED BOX that shows First Call's current operating cash flow per share estimates through 2020.