11 Nov Devon Energy — The Cheapest U.S. Oil Play — Barron’s
Thought you mind enjoy reading the link to last week’s Barron’s article on Top Holding — Devon Energy.
Over the last couple of years, Devon has been transforming itself into a balanced producer of natural gas, liquids and oil. The move from natural gas to oil takes time, something Wall Street doesn’t usually have a lot of patience for. Devon’s market value currently trades near the lows of the group just as it appears poised to increase shareholder value through a combination of rising U.S. and Canadian oil production, growing proved reserves in some of the most prolific domestic energy plays and the recently announced merger/spin-off of its midstream assets with Crosstex Energy. With over $4 billion in cash to smooth out and exploit the inevitable swings in energy prices, I believe this tortoise will once again prove to be a better partner than the hare.