2024-03-10 19:00:00 ET
Summary
- Devon Energy has seen a bounce in its stock following solid earnings, but the stock is still cheap due to strong cash flows.
- The energy company has improved efficiency by cutting capital spending plans for 2024 and focusing on maintaining oil volumes rather than aggressively chasing market share.
- Devon Energy's low breakeven level allows it to generate substantial free cash flow, offering a nearly 10% yield at the current market cap with WTI prices around $80/bbl.
After a brutal start to the year, Devon Energy ( DVN ) has finally bounced following solid earnings. The domestic energy company has become a cash flow machine returning lots of capital to shareholders, making the stock appealing to buy on weakness considering the volatile energy sector. My investment thesis is ultra Bullish on the energy company at this valuation....
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Devon Energy: Disciplined Approach