Devon gains focus

Article Excerpt

DEVON ENERGY $26.91 (New York symbol DVN; TSINetwork Rating: Extra Risk) (405-235-3611; www.dvn.com; Shares o/s: 415.2 million; Market cap: $10.7 billion; Dividend yield: 1.3%) is a leading explorer and producer of oil and natural gas in the U.S. The company now plans to focus on four core areas in Oklahoma and West Texas. As a result, it has agreed to sell almost all of its Canadian assets to Canadian Natural Resources for $2.8 billion U.S. This includes several heavy-oil projects in eastern Alberta as well as its Jackfish Canadian oil sands production. Other foreign companies that have reduced their ownership in the Canadian oil sands in recent years include Norway’s Statoil, France’s Total SA, Arkansas-based Murphy Oil and Houston-based ConocoPhillips. Devon’s planned sales should let it concentrate on its more-profitable and faster-growing U.S. oil properties. With the June 2019 payment, the company raised its dividend by 12.5%. The shares yield 1.3%. Devon Energy is still a buy. buy…

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