"We've diversified our efforts, cut expenses, and fully concentrated our efforts in North America, selling all but our most important holdings [abroad]," Devon Energy (DVN) CEO John Richels tells Barron's.
Despite these efforts, and despite the company's generally well received move to merge its midstream assets with Crosstex Energy (XTXI) and Crosstex Energy LP (XTEX), Jack Willoughby thinks the market hasn't given the company enough credit.
An interesting statistic cited by Willoughby: DVN "has risen to $60, but [is] down 15% from five years ago. Rival companies are up an average of 72% over that time."
"The market values its 3B or so barrels of proven reserves at $8.50/barrel, the cheapest level of any independent producer and less than half of the $20-$25 figure in recent deals," Barron's continues, citing an analyst at Milwaukee-based Fiduciary Management. The same analyst values the stock at around $81.