Basic Materials Stock under Review: Devon Energy Corporation (NYSE: DVN)

Devon Energy Corporation (NYSE: DVN) negotiated 6,724,632 shares against it an average volume of 7,954,552 shares. The stock concluded the recent trade at $+0.02 with upbeat trend move of +0.06%. The company has total market value of 16.556B billion. The company has got a 52-week exceptional price of $45.16 and reached a 52-week lowest of the share price at $28.79. The daily trading range was observed between a day’s low price of $31.43 to a day’s high price of $32.28.

Devon Energy Corp. (DVN) recently reported a three-year business outlook through the year 2020 and its detailed capital and production outlook for 2018. Additionally, the company stated operational and financial results for the fourth quarter and full-year 2017.

Three-Year Outlook Highlights

More detailed commentary regarding Devon’s three-year business outlook is accessible within its fourth-quarter 2017 operations report at company website. Outlook highlights from the report include:

  • Greater than 15 percent corporate-level rates of return
  • $2.5B of cumulative free cash flow through 2020
  • Delaware and STACK oil production CAGR of greater than 25 percent
  • Per-unit cash cost savings of about 15 percent by 2020
  • Potential to monetize over $5B of non-core assets
  • Positioned for sustainable raise of cash to shareholders

“Devon has reached an inflection point by building operating momentum across its U.S. resource plays and has successfully transitioned these world-class assets into full-field development,” stated Dave Hager, president and CEO. “In 2018 and beyond, with our low-risk development programs focused in the economic core of the Delaware Basin and STACK plays, we expect to deliver a dramatic step change in capital efficiency, achieve attractive corporate-level returns and generate substantial amounts of free cash flow at prices above our base planning scenario of $50 WTI pricing.”

In the liquidity ratio analysis; Devon Energy Corporation’s (DVN) debt to equity ratio was 1.12 while current ratio was 1.40. The company has the institutional ownership of 84.00% while the Beta factor was 2.20. The stock’s RSI amounts to 44.80.

Timing of Non-Operated Activity Limits Fourth Quarter Production

Devon’s net production averaged 548,000 Boe per day in the fourth quarter of 2017. Of this total, oil production in the quarter totaled 246,000 barrels per day, which was 14,000 barrels per day below the company’s midpoint guidance.

In the fourth quarter, net production in the U.S. was limited by about 9,000 barrels per day primarily Because of the timing of well tie-ins associated with non-operated activity in the STACK. This timing issue has been resolved with the tie-in of over 50 non-operated wells about year end in the STACK (see “February 2018 Production Update” section for more details.)

In Canada, net production averaged 134,000 Boe per day in the fourth quarter, an 8 percent raise from the previous quarter. Facility modifications and temporary steam constraints at the company’s Jackfish complex curtailed production by about 5,000 barrels per day in the fourth quarter.

Devon Energy Corporation, an independent energy company, primarily engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States and Canada.

 

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Jerome Ireland: Basic Material Sector Reporter I am Jerome Ireland and i give “Values Wire” an insight into the most recent news hitting the “Basic Material” Sector in Wall Street. I have been an independent financial adviser for over 5 years in the city and in recent years turned my experience in finance and passion for journalism into a full time role. I perform analysis of Companies and publicizes valuable information for shareholder community. I am an accomplished journalist who has a passion for travel. My desire to see the world has taken me to countries around the world and given me the opportunity to report for some of the top news organizations. Address:  3373 Sycamore Road Pendleton, OR 97801 Phone:  +(1) 541-377-8262 Email: Jerome@valueswire.com

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