Raymond James raises Devon Energy PT citing Validus deal

Frontier Services

17/08/2022 12:06

** Raymond James raises PT for shale producer Devon Energy
 DVN.N  to $85 from $80, maintains "strong buy" rating
    ** At least 3 other brokerages raised PT on DVN since its
Aug 9 announcement about buying Validus Energy, an Eagle Ford
shale basin operator, for $1.8 bln in cash
    ** Acquisition of Validus more than doubles DVN’s acreage in
the Eagle Ford, nearly doubles output - RJ
    ** Brokerage expects DVN to return an effective 75%
payout(div + buybacks)to shareholders next year 
    ** RJ estimates ~8.5% dividend yield, ~11.5% total yield in
2023 at current oil prices
    **  RJ expects $1.25 bln in buybacks next year
    ** 19 of 31 brokerages rate the stock "buy" or higher, 11
"hold", and 1 "sell"; their median PT is $77.50 - Refinitiv data
    ** DVN up 44.33% YTD, at last close 

 (Reporting by Ankit Kumar in Bengaluru)
 ((Ankit.Kumar2@thomsonreuters.com))