Devon Energy Invests in Growth Through Coterra Acquisition
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 19 hours ago
0mins
Should l Buy DVN?
Source: Marketbeat
Merger Announcement: Devon Energy announced an all-stock merger with Cotterra Energy, which, if approved by shareholders, will create a $58 billion energy giant.
Market Reaction: Following the announcement, Devon's stock initially rose nearly 4% but fell 2.2% the next day, reflecting mixed investor sentiment towards merger announcements.
Focus on Dividends: The combined company plans to offer a dividend of 31.5 cents per share post-merger, representing a 31% increase from Devon's current payout, which is crucial for attracting investors in the energy sector.
Strategic Expansion: The merger aims to enhance operational efficiency and diversify the combined company's geographic reach, particularly as both companies operate in different shale basins, which may mitigate risks associated with fluctuating oil prices.
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Analyst Views on DVN
Wall Street analysts forecast DVN stock price to rise
20 Analyst Rating
18 Buy
2 Hold
0 Sell
Strong Buy
Current: 43.960
Low
41.00
Averages
45.53
High
55.00
Current: 43.960
Low
41.00
Averages
45.53
High
55.00
About DVN
Devon Energy Corporation is an oil and gas producer in the United States with a diversified multi-basin portfolio headlined by an acreage position in the Delaware Basin. The Company is primarily engaged in the exploration, development and production of oil, natural gas and natural gas liquids (NGLs). It owns a portfolio of assets located in the Delaware Basin, Rockies, Eagle Ford and Anadarko Basin. The Delaware Basin operates in southeast New Mexico and across the state line into west Texas. It offers exploration and development opportunities from many geologic reservoirs and play types, including the oil-rich Wolfcamp, Bone Spring, Avalon and Delaware formations. Its Rockies development consists of its Williston Basin and Powder River Basin assets. The Eagle Ford operations are located in Texas' DeWitt and Karnes counties. The Anadarko Basin development is located in western Oklahoma. It has a joint venture with Dow to develop a portion of its Anadarko Basin acreage.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Merger Announcement: Devon Energy announced an all-stock merger with Cotterra Energy, which, if approved by shareholders, will create a $58 billion energy giant.
Market Reaction: Following the announcement, Devon's stock initially rose nearly 4% but fell 2.2% the next day, reflecting mixed investor sentiment towards merger announcements.
Focus on Dividends: The combined company plans to offer a dividend of 31.5 cents per share post-merger, representing a 31% increase from Devon's current payout, which is crucial for attracting investors in the energy sector.
Strategic Expansion: The merger aims to enhance operational efficiency and diversify the combined company's geographic reach, particularly as both companies operate in different shale basins, which may mitigate risks associated with fluctuating oil prices.
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Market Reaction: Following the announcement, Devon's stock initially rose nearly 4% but fell 2.2% the next day, reflecting mixed investor sentiment towards merger announcements.
Focus on Dividends: The combined company plans to offer a dividend of 31.5 cents per share post-merger, representing a 31% increase from Devon's current payout, which is crucial for attracting investors in the energy sector.
Strategic Expansion: The merger aims to enhance operational efficiency and diversify the combined company's geographic reach, particularly as both companies operate in different shale basins, which may mitigate risks associated with fluctuating oil prices.
See More
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- Market Reaction Expectations: Investors are optimistic about the upcoming personal consumption expenditure data, although the cooler-than-expected CPI could impact the Fed's interest rate outlook, with markets currently pricing in only two quarter-point cuts for the year.
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- Quarterly Revenue Growth: Linde reported quarterly revenue of $18.98 billion on January 30, reflecting a 10% year-over-year increase that surpassed the analyst consensus estimate of $18.92 billion, indicating strong performance in the industrial gas sector and boosting investor confidence.
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