Nov 18, 2009 (Datamonitor via COMTEX) --
Devon Energy has unveiled its plan to strategically reposition the company as a high-growth North American onshore company. Devon intends to divest all of its Gulf of Mexico and international assets. The company plans to direct proceeds to its high-return US and Canadian onshore portfolio and to retire debt.
Devon expects to have data rooms open for all of the divestiture assets and commence the divestiture process in the first quarter of 2010. The company expects to complete the divestitures throughout 2010 and to have finished the process by year-end of 2009.
Devon believes that the divestitures will generate after-tax proceeds of $4.5 billion to $7.5 billion. The company expects the repositioning to be highly accretive to earnings, cash flow, production and reserves beginning in 2011.
Larry Nichols, chairman and CEO of Devon Energy, said: "Devon's success has led to an overabundance of opportunities, and this repositioning will allow us to optimize value for our shareholders.
"We do not believe that the value of our high-quality Gulf and international assets is being adequately reflected in our stock price. By monetizing these assets, we will realize their full value, allowing us to unleash the growth potential that resides within our world-class onshore assets."
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Companies: Devon Energy Corp. (DVN)
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Nov 19, 2009 (Fresh Brewed Media via COMTEX) --
Devon Energy (NYSE: DVN) closed yesterday at $71.66. So far the stock has hit a 52-week low of $38.55 and 52-week high of $75.30. Devon Energy stock has been showing support around 69.75 and resistance in the 72.67 range. Technical indicators for the stock are Bullish and S&P gives DVN a positive 4 STAR (out of 5) buy rating. DVN appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Jan '10 70 covered call (DVN AN) for a net debit in the $66.96 area. That is also the break even stock price for this trade. This covered call has a 58 day duration, provides 6.56% downside protection and a 4.54% assigned return rate for a 28.57% annualized return rate (comparison purposes only). A lower cost hedged play for this stock would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the DVN Jan '11 35 Call (VVH AG) and selling the Jan '10 70 call (DVN AN) for a $32.35 debit. The trade has a 58 day life and would provide 6.01% downside protection and an 8.19% assigned return rate for a 52.00% annualized return rate (for comparison purposes only). Devon Energy has a current annual dividend yield of 0.90%.
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Companies: Devon Energy Corp. (DVN)
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Nov 18, 2009 (M2 EQUITYBITES via COMTEX) --
Oil and gas exploration and production company Devon Energy Corp
(NYSE:DVN) revealed on Monday that it intends to sell all of its Gulf
of Mexico and international assets for between USD4.5bn and USD7.5bn.
The divestitures are planned to be conducted throughout 2010, with
proceeds redirected to the company's US and Canadian onshore portfolio
and to retire debt.
This repositioning of the company as an onshore North American
exploration and production company is expected to be highly accretive
to earnings, cash flow, production and reserves beginning in 2011,
Devon Energy said.
Comments on this story may be sent to admin@m2.com
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Companies: Devon Energy Corp. (DVN)
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Nov 17, 2009 (SmarTrend(R) Spotlight via COMTEX) --
Devon Energy (NYSE:DVN) upgraded to Outperform, $80-84 target, at Wells Fargo. The stock closed yesterday at $70.99 on volume of 6,859,700 shares, above average daily volume of 4,393,544.
Devon Energy is currently above its 50-day moving average of $67.89 and above its 200-day moving average of $58.42.
SmarTrend is bullish on shares of DVN and our subscribers received an Uptrend alert on November 10, 2009 at $69.34, which has returned 2.4% to date.
Write to Chip Brian at cbrian@tradethetrend.com
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Companies: Devon Energy Corp. (DVN)
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