Devon Energy Attains 52-Week High - Analyst Blog

On May 29, 2014, the shares of Devon Energy Corp. ( DVN ) touched a 52-week high of $73.98, thanks to its acquisition of high-quality properties, robust performances by its core assets and attractive dividend growth. The share price finally closed at $73.89, up 27.8% from the year-ago closing price.

The combination of non-core asset divestments and prime U.S. asset purchases is the key factor working in favor of Devon Energy. The company's steady expansion of its U.S. operations as is evident from the Eagleford and Cana Woodford shale acquisitions is creating new avenues for growth.

Devon Energy's assets are positioned in some of the most critical development plays. This enabled the company to clock in impressive oil production margin in the first quarter of 2014, which helped to keep the positive earnings streak alive. To transform itself into a pure upstream player, the company in May 2014 announced its collaboration with General Electric Co. ( GE ) to improve production efficiency and lower drilling cost for unconventional resource projects.

Furthermore, upbeat operational performance prompted Devon Energy to offer a 9% hike in quarterly dividend to 24 cents per share in the first quarter that will certainly retain investors' attention to the stock.

Devon Energy is poised to benefit from the encouraging prospects offered by the Eagleford shale and the Delaware basin. Accelerated drilling activity in these two basins will be the highlight of output growth in 2015. These two assets are set to be the cornerstone for Devon Energy's future production potential.

The company plans to increase its domestic oil production by a mammoth 70% or more to 124-136 thousand barrels of oil per day (MBOD) in 2014 compared to 2013 and overall oil production by at least 30% to 198-216 MBOD.

Currently, Devon Energy carries a Zacks Rank #3 (Hold). Other well-placed oil and gas operators include Athlon Energy Inc. ( ATHL ) and Encana Corp. ( ECA ). Both the stocks hold a Zacks Rank #1 (Strong Buy).

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DEVON ENERGY (DVN): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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