Devon Energy (DVN) Stock Price: $103 Target And Buy Rating

By Amit Chowdhry ● Jun 9, 2022
  • The shares of Devon Energy (NYSE: DVN) have received a $103 price target from Truist. These are the details.

The shares of Devon Energy (NYSE: DVN) have received a $103 price target from Truist. And Truist Securities analyst Deal Dingmann increased the price target on Devon Energy from $100 while maintaining a “Buy” rating on the shares.

The adjusted rating is on the heels of Devon Energy announcing it has entered into a definitive purchase agreement to acquire the leasehold interest and related assets of RimRock Oil and Gas, LP, a Warburg Pincus portfolio company, in the Williston Basin for total cash consideration of $865 million. And the deal is subject to customary terms and conditions and is expected to close in the third quarter of 2022, with an effective date of April 1, 2022.

Dingmann noted that the company’s addition of higher quality Williston Basin assets at a low 2.0’s price-to-cash flow acquisition for all cash should largely appeal to most investors. And while this deal is relatively small compared to Devon’s total corporate profile, it provides a solid Williston bolt-on generating additional operational leverage along with the ability to run a more consistent and efficient program.

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