Prime drilling prospects add promise

Article Excerpt

DEVON ENERGY CORP. $28.53 (New York symbol DVN; TSINetwork Rating: Extra Risk) (405-235-3611;; Shares outstanding: 508.8 million; Market cap: $13.4 billion; Dividend yield: 1.1%) 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 67% oil and 33% natural gas. Devon’s output averaged 522,000 barrels of oil equivalent per day for the third quarter, ended September 30, 2018. That’s down 1.0% from 527,000 a year earlier. However, cash flow per share jumped 45.7%, to $0.51 from $0.35. The gain was mostly due to higher realized oil prices and much lower costs. The company’s long-term debt of $5.8 billion is a somewhat high 43% of its market cap. However, that debt only starts to come due after 2021. Devon also holds $3.1 billion in cash. The company sold $3 billion in assets during the latest quarter. In 2018, it has raised $4.7 billion through sales and expects to achieve its $5 billion…

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