Devon Energy raises FY20 production view to 152,000-154,000 bpd » 16:1910/2910/29/20
For the second…
For the second consecutive quarter, Devon is raising its full-year 2020 oil production forecast to a range of 152,000 to 154,000 barrels per day. The improved outlook is due to better than expected well productivity and strong base production performance across its asset portfolio. In the fourth-quarter 2020, oil production is forecasted to average 148,000 to 153,000 barrels per day, a 7,000 barrel per day improvement versus prior guidance expectations. Devon expects to deliver this improved oil growth outlook with less capital than previously projected. The company is lowering the top end of its full-year 2020 E&P capital expenditure guidance by $10 million to a range of $950 million to $990 million in 2020. This improvement is driven by capital efficiency gains in the Delaware Basin. Fourth-quarter upstream capital is expected to range from $160 million to $200 million.
Devon Energy reports Q3 EPS (4c), consensus (10c) » 16:1710/2910/29/20
Net production from…
Net production from Devon's retained assets averaged 326,000 oil-equivalent barrels (Boe) per day during the third quarter. Oil production averaged 146,000 barrels per day, exceeding the company's midpoint guidance by 6,000 barrels per day. Third quarter oil production benefited from strong well productivity in the Delaware Basin and better-than-expected base production performance across the portfolio. Upstream capital spending in the third"Devon is executing at a very high level on all aspects of our disciplined cash-return business model," said Dave Hager, president and CEO. "Our third-quarter performance was highlighted by record-setting well productivity and capital efficiency gains in the Delaware Basin that drove oil production well above guidance with a total capital investment that was below forecast. Furthermore, this strong operational performance, coupled with significant improvements in our corporate cost structure, positioned us to generate $223 million of free cash flow in the quarter." "With our operations successfully scaled to generate free cash flow, our advantaged financial position allows us to accelerate the return of capital to shareholders," Hager said. "In conjunction with the recent closing of the Barnett Shale divestiture, werewarded our shareholders with a $100 million special dividend. This action further demonstrates our commitment to the cashreturn business model, which moderates growth, emphasizes capital efficiencies, prioritizes free cash flow and returns increasing amounts of cash to shareholders."
President Trump weighing executive order to show support for fracking, WSJ says » 15:1910/2710/27/20
CVX, XOM, HAL, COP, EOG, DVN, FANG, SPY, SPX
President Trump is…
President Trump is considering issuing an executive order mandating an economic analysis of fracking, according to senior administration officials, who say the initiative is aimed at highlighting his support for the energy industry in election battleground states such as Pennsylvania, The Wall Street Journal's Timothy Puko reports. The proposed order would ask government agencies to perform an analysis of fracking's impact on the economy and trade, and the consequences if the oil-and-gas extraction technique was banned, the officials said. It also would order those agencies to evaluate what more they can do to expand its use, possibly through land management or support of developing technology, they said. Publicly traded companies in the space include EOG Resources (EOG), Devon Energy (DVN), Diamondback Energy (FANG), Chevron (CVX), ExxonMobil (XOM), Halliburton (HAL) and ConocoPhillips (COP). Reference Link
Devon Energy put volume heavy and directionally bearish » 11:1510/2710/27/20
Bearish flow noted in…
Bearish flow noted in Devon Energy with 2,891 puts trading, or 1.5x expected. Most active are Nov-20 8 puts and Dec-20 7 puts, with total volume in those strikes near 2,700 contracts. The Put/Call Ratio is 3.83, while ATM IV is up nearly 2 points on the day. Earnings are expected on October 29th.
|Over a week ago|
WPX Energy upgraded to Overweight from Neutral at Piper Sandler » 06:1610/2210/22/20
Piper Sandler analyst…
Piper Sandler analyst Mark Lear upgraded WPX Energy (WPX) to Overweight from Neutral with an $8 price target after taking over coverage of the name. The Devon Energy (DVN) deal brings an asset portfolio that will allow for optimization with its Bakken assets being more short lived, Lear tells investors in a research note.
Cimarex, Diamondback could benefit from greater scale, says Morgan Stanley » 09:1910/2110/21/20
XEC, FANG, PXD, PE, COP, CXO, DVN, WPX, SWN, MR, CVX, NBL, MRO, CLR, WLL
Following Pioneer Natural…
Following Pioneer Natural (PXD) announcing the acquisition of Parsley Energy (PE) in an all-stock transaction, as well as recent deals in the sector between ConocoPhillips (COP) and Concho Resources (CXO), Devon Energy (DVN) and WPX Energy (WPX), Southwestern Energy (SWN) and Montage Resources (MR) and Chevron (CVX) and Noble Energy (NBL), Morgan Stanley analyst Devin McDermott said the consolidation trend "appears here to stay." Though he notes that he has "no knowledge of any potential deals," McDermott believes Cimarex Energy (XEC) could drive value from greater scale as a potential seller or through a merger of equals. He also thinks Diamondback Energy (FANG) could benefit from greater scale as a potential acquirer in a hypothetical consolidation deal. Having screened for hypothetical no-premium, all-stock transactions, McDermott sees deals involving Diamondback with Cimarex, Marathon Oil (MRO) with Cimarex or Continental Resources (CLR) with Whiting Petroleum (WLL) potentially offering financial accretion, the analyst added.
WPX Energy downgraded to Hold from Buy at US Capital Advisors » 08:5010/2110/21/20
US Capital Advisors…
US Capital Advisors analyst Cameron Horwitz downgraded WPX Energy to Hold from Buy with a $5 price target.
WPX Energy upgraded to Buy from Neutral at Mizuho » 06:4410/2110/21/20
Mizuho analyst Vincent…
Mizuho analyst Vincent Lovaglio upgraded WPX Energy (WPX) to Buy from Neutral with a price target of $6, down from $9. The combination with Devon Energy (DVN) creates a Permian-focused large-cap with a leading combination of 2021 free cash flow yield and balance sheet leverage, Lovaglio tells investors in a research note.
WPX Energy downgraded to Sector Weight from Overweight at KeyBanc » 05:1610/2010/20/20
KeyBanc analyst Leo…
KeyBanc analyst Leo Mariani downgraded WPX Energy to Sector Weight from Overweight without a price target.
Fly Intel: Top five analyst downgrades » 09:5310/1610/16/20
CLX, DNLI, CMC, WPX, KMB
Catch up on today's…
Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. Clorox (CLX) downgraded to Neutral from Overweight at JPMorgan with analyst Andrea Teixeira saying further multiple re-rating of the shares "will be harder given the lap of the COVID-19 benefit ahead." 2. Denali Therapeutics (DNLI) downgraded to Neutral from Buy at BTIG with analyst Thomas Shrader saying the current valuation suggests the company is "getting the benefit of the doubt" across its programs despite the increased risk of "all things neuro." 3. Commercial Metals (CMC) downgraded to Neutral from Buy at BofA with analyst Timna Tanners citing a more cautious outlook for non-residential business along with concerns that "too much stimulus hopes" are being priced in following the 12% increase in the stock price since the start of this month. 4. WPX Energy (WPX) downgraded to Sector Perform from Outperform at RBC Capital with analyst Brad Heffern saying the merger-of-equals all-stock deals between WPX and Devon Energy (DVN) is likely to close "as offered", which implies "no obvious upside" to WPX outside of Devon. 5. Kimberly-Clark (KMB) downgraded to Neutral from Overweight at JPMorgan with analyst Andrea Teixeira saying further multiple re-rating of the shares "will be harder given the lap of the COVID-19 benefit ahead." This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.