#5 - Devon Energy Corporation (NYSE:DVN)
Devon Energy Corporation (NYSE: DVN) - Devon Energy has undergone a transformation that is positive news for investors. The company focused on growing production, particularly focusing on shale drilling which was a boom-or-bust proposition. However, the company has reinvented itself into an oil company that is showing a discipline which should give investors reason to believe in the company’s fortune. The company is now focusing on finding profitable wells that, over the next three years, will allow the company to earn a return on capital, streamline its portfolio, and strengthen its balance sheet which may allow it to reward shareholders. Currently, the company has a dividend yield of less than 1%, far below the industry average. Company projections, based on oil trading at $60/barrel, are showing $2.5 billion in free cash through 2020. The company has also announced a stock buyback plan which will see the company repurchase up to $4 billion in stock by the end of 2019. With shares trading around $40/share, this should give the stock price room to rise.
About Devon Energy
Devon Energy Corporation, an independent energy company, engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. It operates in Delaware, Eagle Ford, Anadarko, Williston, and Powder River Basins. The company was founded in 1971 and is headquartered in Oklahoma City, Oklahoma.
- Current Price
- $30.77
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 11 Buy Ratings, 11 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $50.05 (62.7% Upside)
