Great way to buy oil

Article Excerpt

DEVON ENERGY, $68.46, is a buy. The company (New York symbol DVN; TSINetwork Rating: Extra Risk) (Shares o/s: 660.0 million; Market cap: $46.6 billion; Divd. yield: 5.3%) continues to use acquisitions to expand operations in its core areas. The company just announced the purchase of the Williston Basin assets of RimRock Oil & Gas, LP for $865 million. This transaction adds 38,000 acres directly offsetting and overlapping Devon’s existing position. The transaction also adds more than 100 highly attractive undrilled inventory locations, positioning Devon’s Williston Basin assets to maintain high-margin production and strong cash flow for several years. What’s more, the assets will add immediately to the company’s cash flow—and because of that, Devon intends to hike its fixed quarterly dividend by 13% following the closing of the transaction. Its shares currently yield a high 5.3%. Devon Energy is a buy. buy…

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