Focused exploration is a big plus

Article Excerpt

DEVON ENERGY CORP. $36.10 (New York symbol DVN; TSINetwork Rating: Extra Risk) (405-235-3611;; Shares outstanding: 526.1 million; Market cap: $19.0 billion; Dividend yield: 0.9%) is one of the largest explorers and producers of oil and natural gas in the U.S. The production mix for the company’s 19,000 wells is 64% oil. and 36% natural gas. Devon’s output averaged 548,000 barrels of oil equivalent per day (both oil and gas) for the fourth quarter, ended December 31, 2017. That’s up 2.0% from 537,000 a year earlier. However, cash flow per share jumped 22.6%, to $1.52 from $1.24. The gain was mostly due to higher realized oil prices and much lower costs. The company’s long-term debt of $10.3 billion is a somewhat high 58% of its market cap. However, none of that comes due before 2021. Devon also holds $2.7 billion in cash. In addition, it plans to raise another $580 million by selling non-core assets. The company will, however, retain what it sees as the best of…

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