2024-05-05 08:01:00 ET
An analyst at Mizuho recently welcomed Devon Energy 's (NYSE: DVN) first-quarter earnings report by raising the stock's price target from $53 to $57 and maintaining a "buy" rating. Here's why the outlook appears positive for this oil and gas producer .
The bulk of Devon's production comes from the Delaware Basin in southeast New Mexico and west Texas. Management's decision to focus investment there appears to be paying off, as first-quarter production came in better than expected. The plan is to invest in improving well productivity in its highest-quality assets, and the good news is Devon achieved "better-than-planned well productivity, cycle time improvements that brought forward activity and the easing of infrastructure constraints in the Delaware Basin," according to the earnings release.
First-quarter production averaged 664 thousand barrels of oil equivalent per day (MBoe/d) compared to guidance for 630 MBoe/d to 650 MBoe/d.
For further details see:
Is Devon Energy Stock Going to $57? 1 Wall Street Analyst Thinks So.