RBC says acquisition of RimRock's Bakken assets will bolster Devon returns
09/06/2022 17:32
** RBC Capital Markets says oil and gas producer Devon
Energy's DVN.N acquisition of RimRock Oil and Gas LP's Bakken
assets should provide competitive returns compared to the
company's portfolio along with low to mid-single-digit accretion
to EPS
** Devon's shares are up as much as 0.28% at $78.16; stock
up ~77% YTD, as of last close
** Devon Energy Corp on late Wednesday agreed to buy RimRock
Oil and Gas LP's assets in Williston Basin, North Dakota for
$865 mln urn:newsml:reuters.com:*:nL4N2XV3AT
** RBC says it had considered DVN's Bakken inventory to be a
bit light and this new acreage has inventory that can help
maintain production and FCF in the area for a few more years
** Brokerage J.P Morgan says they are fans of DVN's
acquisition as deal appears ~5% accretive to brokerage's 2023
cash flow estimate
** Raymond James says deal value is an unbeatable price and
a great deal for DVN; increases PT to $102/share from $90
** Private equity powerhouse Warburg Pincus-backed RimRock
has over 38,000 net acres of total land holdings in the
Williston Basin
(Reporting by Rithika Krishna in Bengaluru)
((Rithika.Krishna@thomsonreuters.com; Twitter: https://twitter.com/rithika_krishna;))