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Devon Energy Corporation (DVN)

- NYSE
  • Jun. 30, 2014, 9:12 AM
    • Linn Energy (LINE, LNCO) agrees to acquire U.S. oil and gas properties from Devon Energy (DVN) for $2.3B.
    • The assets currently produce ~275M cfe/day (~80% gas), with total proved reserves of 1.3T-1.5T cfe and total resource potential of ~3T cfe.
    • The asset package is comprised of ~900K net acres across the Rockies, Mid-Continent, east Texas, north Louisiana and south Texas regions with ~4,500 total wells; LINN says it has identified 1K-plus future drilling locations and ~600 recompletion opportunities.
    • LINN says the acquisition will be financed ultimately through the sale of its Granite Wash assets and other non-producing acreage in its portfolio.
    • DVN says the deal covers remaining U.S. assets it had targeted for divestiture, and that the sale of Canadian and U.S. non-core properties over the past few months has generated $5B-plus in proceeds at an accretive multiple of nearly 7x 2013 EBITDA.
    • LINE +0.3%, DVN +0.4% premarket.
    | 47 Comments
  • Jun. 25, 2014, 7:17 PM
    • The decision to allow two Texas companies to export condensates looks like a win for Eagle Ford Shale crude producers at the expense of refiners and companies planning to build processing plants along the Gulf coast.
    • Today's selloff in refiners reflected concern that the groups will lose some of their competitive edge if condensate exports become common: Valero Energy (NYSE:VLO), the largest U.S. refiner, dropped 8.3%, PBF tumbled 10.7%, PSX fell 4.2%, and HFC slid 6.7%.
    • Oppenheimer notes that PXD, DVN, MRO, COP and MUR produce the most Eagle Ford condensate, and could benefit if U.S. condensate prices close some of the gap with European prices; EOG, the largest Eagle Ford producer, produces little condensate and likely benefits little from the lifting of the condensate ban.
    • Investor reaction toward Gulf Coast gathering and processing MLPs such as EPD, MMP, KMP and NGLS was more muted, since plans to build splitters in Texas may be undermined by even modest rule changes in the crude export ban that allow Eagle Ford producers to sell condensate after running it from the wellhead to their own nearby - and much cheaper - distillation towers.
    | 27 Comments
  • Jun. 23, 2014, 3:59 PM
    • Suncor Energy (SU +0.5%) and five partners say they will build a $165M water technology development center at SU’s Firebag oil sands facility in northern Alberta.
    • The facility, being developed as a joint industry project under Canada’s Oil Sands Innovation Alliance, will test water treatment and further develop recycling technologies.
    • SU’s partners in the project are Canadian Natural Resources (CNQ), Devon Energy (DVN), Nexen (CEO), Shell (RDS.A, RDS.B) and Husky Energy (HUSKF); SU will construct, own and operate the center but will collaborate with the others on design, construction and operations.
    | Comment!
  • Jun. 11, 2014, 10:21 AM
    • Devon Energy (DVN +1.3%) nears new 52-week highs after BofA resumes coverage of the shares with a Buy rating and $100 price target; when adjusted for the value of its public holdings, the firm believes DVN stands on the lowest multiple in the sector.
    • BofA says DVN management has surpassed its expectations, starting with EnLink providing a public marker for a previously overlooked midstream business, but with options to monetize retained interests at an accretive multiple.
    | 2 Comments
  • Jun. 9, 2014, 11:49 AM
    • EOG Resources' (EOG +1.1%) crude oil production surged 42% in Q1, and if business stays on course, as expected, the E&P company could enjoy a 32% jump in earnings this year, according to a weekend profile in Barron's.
    • EOG's enterprise value is 6.9x this year's estimated EBITDA, roughly in line with the EV/EBITDA multiples accorded competitors Chesapeake Energy (CHK) and Devon Energy (DVN), but the story says it deserves a loftier multiple than the group, given its significant drilling inventory, superior production growth, lower debt ratio, and 15.6% return on equity vs. an average of 9.5% among peers.
    • EOG raised its 2014 goal for growth in crude oil production to 29% from a prior 27%, and for total energy production to 12% from an earlier 11.5%, but its estimates often prove conservative, sparking expectations for more upward revisions as the year unfolds.
    | Comment!
  • Jun. 4, 2014, 12:26 PM
    • Devon Energy Corporation (DVN) declares $0.24/share quarterly dividend, in line with previous.
    • Forward yield 1.28%
    • Payable Sept. 30; for shareholders of record Sept. 12; ex-div Sept. 10.
    | 1 Comment
  • Jun. 3, 2014, 10:53 AM
    • Devon Energy (DVN +1.5%) is upgraded to Outperform from Market Perform with an $85-$90 price target range at Wells Fargo, which cites improving production visibility that should drive 20%-plus crude growth over the next few years driven by Permian and Eagle Ford fields and from Canada.
    • Wells says expanding margins and EBITDA expected to grow ~32% over the next few years, while posing debt-adjusted growth per share of 8% in 2015 and 12% in 2016, place it near the top of large cap names.
    | 2 Comments
  • May. 29, 2014, 8:42 AM
    • Oklahoma Gov. Fallin signed legislation yesterday that will raise taxes on the state's oil and gas wells but was supported by the state's largest oil and gas producers, Devon Energy (DVN), Continental Resources (CLR) and Chesapeake Energy (CHK).
    • The new law takes effect in 2015 and will tax energy companies at a 2% rate on a well's oil and gas output for the first three years of its life; after that, the tax rate rises to 7%.
    • Critics say the higher rate still falls short of what's needed to help fund education and infrastructure improvements.
    | Comment!
  • May. 20, 2014, 3:32 PM
    • Anadarko Petroleum (APC -1.1%) is looking too pricey after a 25% YTD gain for Barclays analyst Thomas Driscoll, who downgrades shares to Equal Weight from Overweight.
    • It is easy to understand the enthusiasm for APC considering the strong record of deepwater exploration success, the willingness to monetize assets and the large discovery in Mozambique, Driscoll says; yet Continental Resources (CLR), EOG Resources (EOG) and Noble Energy (NBL) all are likely to grow twice as fast as APC while lacking any appreciable premium in their shares.
    • The analyst prefers Devon Energy (DVN +1.2%), which he says has made decisive steps to upgrade its portfolio in recent months, significantly improving its near-term investment opportunity set.
    | Comment!
  • May. 20, 2014, 11:22 AM
    • Devon Energy (DVN +2.2%) moves within a dollar of its 52-week high after Barclays upgrades shares to Overweight from Equal Weight to reflect the impact of its oil growth strategy on valuation and stock performance.
    • Barclays says DVN's balance sheet adjusted growth rate correlation with share prices as “very good proxies for returns on new capital."
    • Also, Oppenheimer raises its DVN price target to $85 from $75; following a recent meeting with COO David Hager, the firm is upbeat on DVN's recent transactions and expects it to generate $600M of free cash flow next year, enabling it to reduce its debt (Briefing.com).
    | Comment!
  • May. 12, 2014, 2:44 PM
    • General Electric (GE +1.3%) and Devon Energy (DVN +0.3%) say they will team up to develop systems to help boost the flow of liquids from oil wells.
    • The companies plan to work together to develop and test products to enhance the performance and economics of unconventional oil and gas projects, including artificial lift systems used for increasing the flow of liquids from production wells, advanced drilling technologies and water treatment solutions.
    • The announcement comes after Chevron and GE formed a technology alliance in February.
    | Comment!
  • May. 7, 2014, 8:58 AM
    • Devon Energy (DVN+1.6% premarket after reporting a Q1 profit compared with a year-ago loss when it wrote down the value of some natural gas assets.
    • Q1 oil and gas output totaled 691K boe/day, up 0.6% Y/Y; excluding production associated with divestiture properties, top-line production from Devon's retained, go-forward asset base rose 7% Y/Y to 563K boe/day.
    • Led by the Permian Basin and Eagle Ford, DVN's most significant growth came from retained U.S. operations, where oil production jumped 56% Y/Y.
    • Average realized prices, before hedging impacts, jumped 29% for oil and 51% for natural gas.
    | Comment!
  • May. 7, 2014, 8:05 AM
    • Devon Energy (DVN): Q1 EPS of $1.34 beats by $0.07.
    • Revenue of $3.72B (+88.8% Y/Y) beats by $850M.
    • Press Release
    | Comment!
  • May. 6, 2014, 5:30 PM
  • May. 6, 2014, 5:03 PM
    • Devon Energy (DVN) and Cimarex Energy (XEC) each agree to acquire 50K net acres and associated production primarily in the Cana-Woodford Shale for $249M.
    • DVN's share of the assets includes current production of ~5,800 boe/day (37% liquids) and proved reserves of ~23M boe; XEC's portion includes current production of 35M cfe/day (63% gas) and proved developed reserves of ~140B cfe.
    | Comment!
  • May. 5, 2014, 5:42 PM
    • Talisman Energy (TLM) and Statoil (STO) are considering selling their joint venture in the Eagle Ford basin, which could fetch more than $4B, Bloomberg reports.
    • TLM is said to have solicited offers last year for its 50% interest in the JV and couldn’t find a buyer in part because STO wasn’t ready to exit.
    • The report speculates that a sale could draw interest from large exploration companies such as Encana (ECA), Murphy Oil (MUR) and Devon Energy (DVN) that want to acquire more oil-producing properties.
    | 8 Comments
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Company Description
Devon Energy Corporation is an independent energy company engaged in the exploration, development and production of oil, natural gas and NGLs.