Company report

Devon Energy corporate report

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Report summary

Devon s seven month flurry of M&A repositioned its portfolio to be better suited for growth in a low price environment. We now estimate that Devon holds the second largest base of undeveloped North American liquids reserves that generates >10% returns under US$70/bbl WTI. Our deal valuations suggest Devon had to pay a modest premium to acquire the high upside tight oil assets while selling its non core assets at a small discount. Devon will rely on its proven track record as a strong tight oil operator to improve results and create incremental value. Gearingis far above historical norms; the company needs to prove it can de lever orgaincally. We believe Devon is well positioned to generate free cash flow.

What's included

This report contains

  • Document

    Devon Energy corporate report

    PDF 530.96 KB

  • Document

    Devon Energy corporate report

    ZIP 1.67 MB

  • Document

    Devon Energy corporate report.xls

    XLS 3.88 MB

Table of contents

  • Executive summary
  • Strategy
  • Valuation
  • Financial health
  • Resources, reserves and production
  • Portfolio summary
  • Economic assumptions

Tables and charts

This report includes 27 images and tables including:

Images

  • Enterprise value vs. WM NPV10
  • Asset-level NPV10
  • Share-price evolution
  • Evolution of market premium / discount
  • Net-debt evolution
  • Benchmark: gearing evolution
  • Benchmark: WM commercial reserves of North American onshore liquids by breakeven
  • Key tight-oil asset breakevens and reserves
  • Key uncon-gas asset breakevens and reserves
  • Cana/STACK/SCOOP operational evolution
  • Bone Spring operational evolution
  • Cash flow breakevens evolution
  • Net debt outlook
  • Devon: reported and forecasted production
  • Benchmark: liq. production CAGR 2017 - 2022
  • Reported organic reserve replacement
  • Benchmark: WM commercial reserves life
  • Base price assumptions (nominal terms)
  • Base, high and low Brent (nominal terms)

Tables

  • SWOT analysis
  • Key assets
  • Deal metrics: net change from “portfolio sharpening” M&A activity
  • Base price assumptions (nominal terms)
  • High price assumptions
  • Low price assumptions
  • Valuation assumptions
  • Foreign exchange rate assumptions

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