Devon Energy: Setting The Tone For 2020

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About: Devon Energy Corporation (DVN)
by: Sarfaraz A. Khan
This article is exclusive for subscribers.
Sarfaraz A. Khan
Energy, commodities, macro, long only
Summary

Devon Energy has sold Barnett Shale assets for $770Mn and will use the proceeds to repurchase shares.

Devon Energy has $4.3Bn of debt, reasonable leverage ratios, no significant maturities in the next decade, and $4.7Bn of liquidity.

Devon Energy, which needs oil prices of just $48/bbl to balance cash flows, will likely generate strong levels of free cash flows in 2020.

Devon Energy (DVN) has sold a non-core asset and used the proceeds to boost its share buyback program, thereby setting a positive tone for 2020 in which returning capital to shareholders will be