One of the better plays in the energy sector at this time appears to be Devon Energy (DVN), which several days ago, dropped to levels not seen since a brief moment in 2011. Other than that, it hasn't traded that low since 2009. It has made a nice move since the latter part of April, but when measured against a 5-year performance, it is still relatively cheap. If measured against a six-month chart, it looks more volatile and unpredictable. The reason why is because it, in fact, has been.
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Showing posts with label Devon Energy. Show all posts
Showing posts with label Devon Energy. Show all posts
Tuesday, May 28, 2013
Monday, July 23, 2012
AK Steel (AKS) (BRY) (CMRE) (COG) (CRZO) (DTE) (DVN) (KGC) (NXY) (NXY) (SLW) (SRE) (SYT) Downgraded by Analysts
Shares of commodity companies AK Steel Holding Co. (AKS), Berry Petroleum Comp (BRY), Comstock Resources (CMRE), Cabot Oil & Gas (COG), Carrizo Oil & Gas (CRZO), DTE Energy (DTE), Devon Energy Co. (DVN), Kinross Gold (KGC), Silver Wheaton Corp. (SLW), Sempra Energy (SRE) and Syngenta AG (SYT) were downgraded by analysts.
UBS AG (NYSE: UBS) downgraded AK Steel Holding Co. (AKS) from a "Buy" rating to a "Neutral" rating.
Tudor Pickering downgraded Berry Petroleum Comp (BRY) from an "Accumulate" rating to a "Hold" rating.
Wells Fargo & Co. (NYSE: WFC) downgraded Comstock Resources (CMRE) from an "Outperform" rating to a "Market Perform" rating.
Tudor Pickering downgraded Cabot Oil & Gas (COG) from an "Accumulate" rating to a "Hold" rating.
Tudor Pickering downgraded Carrizo Oil & Gas (CRZO) from a "Buy" rating to an "Accumulate" rating.
Argus downgraded DTE Energy (DTE) from a "Buy" rating to a "Hold" rating.
Tudor Pickering downgraded Devon Energy Co. (DVN) from a "Buy" rating to an "Accumulate" rating.
Macquarie downgraded Kinross Gold (KGC) from an "Outperform" rating to a "Neutral" rating.
Macquarie downgraded Silver Wheaton Corp. (SLW) from an "Outperform" rating to a "Neutral" rating.
Argus downgraded Sempra Energy (SRE) from a "Buy" rating to a "Hold" rating.
Sanford C. Bernstein downgraded Syngenta AG (SYT) from a "Market Perform" rating to an "Underperform" rating.
UBS AG (NYSE: UBS) downgraded AK Steel Holding Co. (AKS) from a "Buy" rating to a "Neutral" rating.
Tudor Pickering downgraded Berry Petroleum Comp (BRY) from an "Accumulate" rating to a "Hold" rating.
Wells Fargo & Co. (NYSE: WFC) downgraded Comstock Resources (CMRE) from an "Outperform" rating to a "Market Perform" rating.
Tudor Pickering downgraded Cabot Oil & Gas (COG) from an "Accumulate" rating to a "Hold" rating.
Tudor Pickering downgraded Carrizo Oil & Gas (CRZO) from a "Buy" rating to an "Accumulate" rating.
Argus downgraded DTE Energy (DTE) from a "Buy" rating to a "Hold" rating.
Tudor Pickering downgraded Devon Energy Co. (DVN) from a "Buy" rating to an "Accumulate" rating.
Macquarie downgraded Kinross Gold (KGC) from an "Outperform" rating to a "Neutral" rating.
Macquarie downgraded Silver Wheaton Corp. (SLW) from an "Outperform" rating to a "Neutral" rating.
Argus downgraded Sempra Energy (SRE) from a "Buy" rating to a "Hold" rating.
Sanford C. Bernstein downgraded Syngenta AG (SYT) from a "Market Perform" rating to an "Underperform" rating.
Monday, September 27, 2010
Williams (NYSE:WMB), Devon (NYSE:DVN), Noble (NYSE:NBL), Apache(NYSE:APA), Williams (NYSE:WMB) Cutting Spending
Natural gas companies like Devon Energy Corp (NYSE:DVN), Noble Energy Inc (NYSE:NBL) Williams (NYSE:WMB) and Apache Corp (NYSE:APA) are all expected to lower their capital expenditures in 2011 in light of ongoing low natural gas prices.
A large portion of the lower capex will be from cutting back on drilling for natural gas by the companies, and other companies with natural gas exposure.
Some of those cuts could be offset by transferring spending to oil exploration and cash generation from free-flowing debt markets.
Williams has already confirmed they're going to cut spending in 2011, and the others mentioned are sure to follow. Lower prices and lower margins, which will result in lower earnings are the reasons behind the spending cuts. That means less money to spend, as too much debt spending would crush the performance of the companies.
One positive area for gas companies is liquids, where companies holding those assets will be able to sell it at premium prices.
An area that will demand capital expenditure are those holding leases on acreage that must be drilled unless they expire.
But based on the price of natural gas, some experts in the industry say supply is so abundant it could be many years before natural gas prices turn around.
The smart companies are increasing their exposure to oil and the liquids mentioned above. Those companies which don't adapt are going to struggle to increase earnings and be profitable.
EOG Resources Inc (NYSE:EOG) and Chesapeake Energy (NYSE:CHK), among others, have already moved in that direction.
Another strategy recently has been for companies heavily exposed to natural gas to raise capital through debt, with Linn Energy (Nasdaq:LINE) and Anadarko Petroleum Corp (NYSE:APC) among the most recent.
They are doing that for the time when the natural gas market recovers, which will probably be a long wait. But they will be prepared for it whenever it does happen.
A large portion of the lower capex will be from cutting back on drilling for natural gas by the companies, and other companies with natural gas exposure.
Some of those cuts could be offset by transferring spending to oil exploration and cash generation from free-flowing debt markets.
Williams has already confirmed they're going to cut spending in 2011, and the others mentioned are sure to follow. Lower prices and lower margins, which will result in lower earnings are the reasons behind the spending cuts. That means less money to spend, as too much debt spending would crush the performance of the companies.
One positive area for gas companies is liquids, where companies holding those assets will be able to sell it at premium prices.
An area that will demand capital expenditure are those holding leases on acreage that must be drilled unless they expire.
But based on the price of natural gas, some experts in the industry say supply is so abundant it could be many years before natural gas prices turn around.
The smart companies are increasing their exposure to oil and the liquids mentioned above. Those companies which don't adapt are going to struggle to increase earnings and be profitable.
EOG Resources Inc (NYSE:EOG) and Chesapeake Energy (NYSE:CHK), among others, have already moved in that direction.
Another strategy recently has been for companies heavily exposed to natural gas to raise capital through debt, with Linn Energy (Nasdaq:LINE) and Anadarko Petroleum Corp (NYSE:APC) among the most recent.
They are doing that for the time when the natural gas market recovers, which will probably be a long wait. But they will be prepared for it whenever it does happen.
Friday, August 27, 2010
Chesapeake (NYSE:CHK), EnCana (NYSE:ECA) and Devon (NYSE:DVN) Up on Higher Demand from Warm Weather
Chesapeake Energy (NYSE:CHK), EnCana Corp. (NYSE:ECA) and Devon Energy Corp. (NYSE:DVN), along with Anadarko Petroleum Corp. (NYSE:APC) and Halliburton (NYSE:HAL), on news of the warmer summer increased demand for natural gas for the generation of electricity.
Most of the companies with exposure to the commodity are up today, but there is downward pressure coming as the supply continues to grow in spite of the demand.
The increase in share price of the companies today are based on past demand, and not on future prospects.
For example, for the week ending August 20, stockpiles of natural gas in the lower 48 states increased by 40 billion cubic feet.
There also continues to be ample supply as storage levels are 6.2 percent above their five-year average, even with the recent strong demand. And the natural gas inventories have risen over the Tcf level for only the second time in 2010.
A number of companies with significant exposure to natural gas understand the threats, even in a high-demand period of time, as the huge amount of resource and increasing number of companies entering into the field ensure downward pressure on natural gas prices for some time to come.
Some have been diversifying into oil to help them maintain revenue and earnings growth.
Most of the companies with exposure to the commodity are up today, but there is downward pressure coming as the supply continues to grow in spite of the demand.
The increase in share price of the companies today are based on past demand, and not on future prospects.
For example, for the week ending August 20, stockpiles of natural gas in the lower 48 states increased by 40 billion cubic feet.
There also continues to be ample supply as storage levels are 6.2 percent above their five-year average, even with the recent strong demand. And the natural gas inventories have risen over the Tcf level for only the second time in 2010.
A number of companies with significant exposure to natural gas understand the threats, even in a high-demand period of time, as the huge amount of resource and increasing number of companies entering into the field ensure downward pressure on natural gas prices for some time to come.
Some have been diversifying into oil to help them maintain revenue and earnings growth.
Tuesday, August 17, 2010
BP (NYSE:BP) Completes Acquisition of Devon Energy (NYSE:DVN) Oil Field
Although BP (NYSE:BP) and Devon Energy (NYSE:DVN) have both been divesting of assets for different purposes, in the case of both companies they're still looking to acquire strategic assets to coincide with their business strategy going forward.
In this case BP and Devon have completed their latest deal where BP acquired an oil field in Azerbaijan waters in the Caspian Sea for $2 billion.
Devon is moving toward focusing on assets in onshore assets in North America, while also using the capital raised for paying down debt and buying back shares of the company.
The ACG field acquired by BP produces approximately 17,000 barrels of oil a day.
Devon is also selling assets in Brazil, which they expect to close on by the end of 2010. BP has been buying up promising oil fields in Brazil on the other hand, acquiring rights to 10 blocks representing about 1.4 million acres.
In this case BP and Devon have completed their latest deal where BP acquired an oil field in Azerbaijan waters in the Caspian Sea for $2 billion.
Devon is moving toward focusing on assets in onshore assets in North America, while also using the capital raised for paying down debt and buying back shares of the company.
The ACG field acquired by BP produces approximately 17,000 barrels of oil a day.
Devon is also selling assets in Brazil, which they expect to close on by the end of 2010. BP has been buying up promising oil fields in Brazil on the other hand, acquiring rights to 10 blocks representing about 1.4 million acres.
Thursday, July 22, 2010
Devon Energy (NYSE:DVN) Upgraded by Barclays (NYSE:BCS)
Citing divesting of assets that had weighed on the company, Barclays (NYSE:BCS) upgraded Devon Energy (NYSE:DVN) from Equalweight to Overweight, and increased their price target on the company from $77 to $78 a share.
Barclays said, "Devon's results should improve as it has shed its underperforming GOM and international assets. Production per share growth, adjusted for spending, would have been an estimated 5%/year in 2008-2009 vs. the 0% actual result."
Estimates for earnings per share for 2010 was increased to $5.25 from $5.20, and for 2011 to $4.50 from $4.00.
Devon closed Wednesday at $62.67, down $0.20, or 0.32 percent.
Barclays said, "Devon's results should improve as it has shed its underperforming GOM and international assets. Production per share growth, adjusted for spending, would have been an estimated 5%/year in 2008-2009 vs. the 0% actual result."
Estimates for earnings per share for 2010 was increased to $5.25 from $5.20, and for 2011 to $4.50 from $4.00.
Devon closed Wednesday at $62.67, down $0.20, or 0.32 percent.
Tuesday, July 13, 2010
Apache (NYSE:APA) Down on BP (NYSE:BP) Acquisition Reports
Reports that Apache Corp (NYSE:APA) is in negotiations with BP (NYSE:BP) to acquire assets held by the company in Alaska, valued at a little under $12 billion, caused the two stocks to go in opposite directions, with Apache getting the worst of the deal; at least temporarily.
As of 3:20 PM EDT, Apache was at $84.59a share, a decline of $3.26, or 3.71 percent.
BP surged by $2.60 a share, or 7.64 percent, to $36.65. They've added over $15 billion in market cap to the company in the last 10 days or so.
The drop in share price of Apache brought its market cap below $30 billion, and analysts are concerned the approximate $12 billion price tag on the Alaskan property may be too much for Apache to handle alone, even though they did have their debt to market capitalization operate below 25 percent in 2009. That would mean they may have some room for a deal of this size to be made.
But Apache still hasn't officially closed on their Mariner Energy deal last month, where they spend $2.7 billion for that, and they just before that spent another $1.05 billion to acquire the Gulf assets of Devon Energy (NYSE:DVN).
BP would be selling their 26 percent stake in Prudhoe Bay, which is the Alaskan asset being referred to, where their portion in the oil field yielded an average of 69,000 barrels a day in 2009, which would be a nice boost for Apache over the long term.
Continuing economic uncertainty does have analysts and investors nervous if Apache were to go ahead with this big of a deal.
The size of Apache, along with the size of the deal, could imply they are going to buy a portion of Prudhoe, or may have a partner to take up some of the extra costs and resultant stake in it.
As of 3:20 PM EDT, Apache was at $84.59a share, a decline of $3.26, or 3.71 percent.
BP surged by $2.60 a share, or 7.64 percent, to $36.65. They've added over $15 billion in market cap to the company in the last 10 days or so.
The drop in share price of Apache brought its market cap below $30 billion, and analysts are concerned the approximate $12 billion price tag on the Alaskan property may be too much for Apache to handle alone, even though they did have their debt to market capitalization operate below 25 percent in 2009. That would mean they may have some room for a deal of this size to be made.
But Apache still hasn't officially closed on their Mariner Energy deal last month, where they spend $2.7 billion for that, and they just before that spent another $1.05 billion to acquire the Gulf assets of Devon Energy (NYSE:DVN).
BP would be selling their 26 percent stake in Prudhoe Bay, which is the Alaskan asset being referred to, where their portion in the oil field yielded an average of 69,000 barrels a day in 2009, which would be a nice boost for Apache over the long term.
Continuing economic uncertainty does have analysts and investors nervous if Apache were to go ahead with this big of a deal.
The size of Apache, along with the size of the deal, could imply they are going to buy a portion of Prudhoe, or may have a partner to take up some of the extra costs and resultant stake in it.
Tuesday, May 18, 2010
Canadian Natural Resources' (TSE:CNQ) Inflation Concerns Rising
Canadian Natural Resources Ltd (TSE:CNQ) was hammered by inflation at its last phase of its Horizon oil sands project, which came in over budget to the tune of 43 percent.
The first phase of the Horizon project cost C$9.7 billion to develop, equal to about C$80,000 per barrel of daily production. Canadian Natural President Steve Laut said he expects the second phase to be even more expensive than the first.
Laut said at an investor meeting, "The biggest concern for us is not so much what the cost is, but is there going to be escalation, can we handle the inflation that might come at us?"
With a number of their competitors like Devon Energy Corp (DVN.N), Imperial Oil Ltd (TSE:IMO) and Cenovus Energy (NYSE:CVE) starting up projects they have on hold, competition for materials, vendors and contractors with experience, could end up with prices rising even further.
To try to manage that, Laut said "we've got to have a very robust execution plan. We've to have enough flexibility that we can pull enough levers if costs start to take off on us."
The first phase of the Horizon project cost C$9.7 billion to develop, equal to about C$80,000 per barrel of daily production. Canadian Natural President Steve Laut said he expects the second phase to be even more expensive than the first.
Laut said at an investor meeting, "The biggest concern for us is not so much what the cost is, but is there going to be escalation, can we handle the inflation that might come at us?"
With a number of their competitors like Devon Energy Corp (DVN.N), Imperial Oil Ltd (TSE:IMO) and Cenovus Energy (NYSE:CVE) starting up projects they have on hold, competition for materials, vendors and contractors with experience, could end up with prices rising even further.
To try to manage that, Laut said "we've got to have a very robust execution plan. We've to have enough flexibility that we can pull enough levers if costs start to take off on us."
Saturday, May 8, 2010
Devon Energy (NYSE:DVN) Ready to Fly
Devon Energy (NYSE:DVN) made a great move (in hindsight) when they divested of their holdings in the Gulf of Mexico before the unfortunate accident which brought down the oil rig Deepwater Horizon, which while lucky, still has strong, positive repercussions for Devon going forward, specifically with how they're making use of their extra capital, and have prepared for solid, organic growth for some time to come.
With their $9.9 billion in capital as a result of selling their Gulf assets, Devon has been buying back stock in the company, with $3.5 billion used for that purpose.
The strong balance sheet of Devon, along with a good mix of oil and gas assets, and their low operational costs, has positioned them to be among the best in the natural gas sector for some time to come.
With their $9.9 billion in capital as a result of selling their Gulf assets, Devon has been buying back stock in the company, with $3.5 billion used for that purpose.
The strong balance sheet of Devon, along with a good mix of oil and gas assets, and their low operational costs, has positioned them to be among the best in the natural gas sector for some time to come.
Monday, April 12, 2010
Apache (NYSE:APA) Acquiring Devon Energy (NYSE:DVN) Assets in Gulf of Mexico
Apache acquired shelf assets from Devon Energy
Apache Corp. (NYSE:APA) announced today they're acquiring the shelf assets of Devon Energy (NYSE:DVN) in the Gulf of Mexico for $1.05 billion.
Shelf assets refers to gas and oil that is located in shallower waters. Apache said they're going to fund the acquisition, for the most part, with short-term obligations and cash.
Once the deal is closed, estimates are the properties will generate about 55 million cubic feet of gas on a daily basis, as well as 9,500 barrels of oil a day.
Net proven and probable reserves are estimated to be around 83 million of barrels of oil equivalent as of the end of 2009.
The deal is slated to be closed in June 2010.
Apache Corp. (NYSE:APA) announced today they're acquiring the shelf assets of Devon Energy (NYSE:DVN) in the Gulf of Mexico for $1.05 billion.
Shelf assets refers to gas and oil that is located in shallower waters. Apache said they're going to fund the acquisition, for the most part, with short-term obligations and cash.
Once the deal is closed, estimates are the properties will generate about 55 million cubic feet of gas on a daily basis, as well as 9,500 barrels of oil a day.
Net proven and probable reserves are estimated to be around 83 million of barrels of oil equivalent as of the end of 2009.
The deal is slated to be closed in June 2010.
Monday, April 5, 2010
Will Halliburton (NYSE: HAL), Baker Hughes (NYSE:BHI) Benefit from More Oil and Gas Exploration?
Halliburton and Baker Hughes
This is a no brainer of course, there is no doubt the decision to allow more drilling off the Coasts of the U.S. by Obama will be a big boost to exploration companies like Halliburton (NYSE:HAL) and Baker Hughes (NYSE:BHI).
Oil drilling companies like Atwood Oceanics (NYSE:ATW) and Transocean (NYSE:RIG), and others like them, should benefit as oil and gas resources are discovered.
Assuming they were part of the action, other types of companies which would probably profit from it are Devon Energy (NYSE:DVN) and EOG Resources (NYSE:EOG).
Some are trying to say certain parts of the coastlines being released for drilling won't produce much in the way of oil and gas, but that's simply speculation and wishful thinking.
We have no idea how much may be out there, and until the exploration and drilling takes place, we won't have an answer.
These are of course long-term plays, but something to keep in mind as the exploration and drilling gets underway in the years ahead.
This is a no brainer of course, there is no doubt the decision to allow more drilling off the Coasts of the U.S. by Obama will be a big boost to exploration companies like Halliburton (NYSE:HAL) and Baker Hughes (NYSE:BHI).
Oil drilling companies like Atwood Oceanics (NYSE:ATW) and Transocean (NYSE:RIG), and others like them, should benefit as oil and gas resources are discovered.
Assuming they were part of the action, other types of companies which would probably profit from it are Devon Energy (NYSE:DVN) and EOG Resources (NYSE:EOG).
Some are trying to say certain parts of the coastlines being released for drilling won't produce much in the way of oil and gas, but that's simply speculation and wishful thinking.
We have no idea how much may be out there, and until the exploration and drilling takes place, we won't have an answer.
These are of course long-term plays, but something to keep in mind as the exploration and drilling gets underway in the years ahead.
Friday, March 12, 2010
Devon Energy (NYSE:DVN) Increasing Oil Sands Presence
Devon Energy in Deal with BP in Oil Sands' Kirby Project
Devon Energy (NYSE:DVN) has joined with BP PLC (NYSE:BP) in a strategy of increasing its presence in the Canadian oil sands.
Devon gets access to BP's Kirby project, while selling its offshore oil assets to BP, which includes the high-producing Campos Basin in Brazil waters, along with some assets in the Gulf of Mexico. This is a good fit for BP because they already lead that region in oil and gas production.
The Kirby project is considered a very strong production site, and is located in a strategically beneficial area of the sands.
Analysts feel it's a win/win deal for both companies, and each should benefit nicely from it over the next decade or more.
Devon is paying $500 million for half of the stake in the Kirby project, which has an estimated 1.5 billion barrels of bitumen there, which it seems Devon feels actually holds more.
Devon Energy in Deal with BP in Oil Sands' Kirby Project
Devon Energy (NYSE:DVN) has joined with BP PLC (NYSE:BP) in a strategy of increasing its presence in the Canadian oil sands.
Devon gets access to BP's Kirby project, while selling its offshore oil assets to BP, which includes the high-producing Campos Basin in Brazil waters, along with some assets in the Gulf of Mexico. This is a good fit for BP because they already lead that region in oil and gas production.
The Kirby project is considered a very strong production site, and is located in a strategically beneficial area of the sands.
Analysts feel it's a win/win deal for both companies, and each should benefit nicely from it over the next decade or more.
Devon is paying $500 million for half of the stake in the Kirby project, which has an estimated 1.5 billion barrels of bitumen there, which it seems Devon feels actually holds more.
Devon Energy in Deal with BP in Oil Sands' Kirby Project
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