CDEV - 3 Under-the-Radar Energy Stocks With Upcoming Catalysts You Won't Want to Miss
In early 2021, Devon Energy (NYSE: DVN) closed its merger of equals with fellow oil producer WPX Energy. Since then, shares of Devon have soared more than 280%, while the total return is approaching 310%. That's impressive, considering the S&P 500 's total return is a mere 5%. While higher oil prices have helped fuel Devon's monster returns, the merger helped lower its costs, enabling it to generate more cash. It's returning the bulk of that windfall to shareholders through a growing base dividend, variable dividends based on its free cash flow, and share repurchases.
Devon's success is leading other oil producers to follow in its footsteps. Lesser-known producers Whiting Petroleum (NYSE: WLL) , Oasis Petroleum (NASDAQ: OAS) , and Centennial Resource Development (NASDAQ: CDEV) are all currently pursuing merger of equals transactions. Once those deals close, these oil stocks should generate more free cash, the bulk of which they plan to return to shareholders. That upcoming catalyst is something investors won't want to miss.
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3 Under-the-Radar Energy Stocks With Upcoming Catalysts You Won't Want to Miss