I was eagerly waiting to see what Devon would report. I don't invest in Devon, never have, never will, but for some reason I had an intuition regarding Devon.
Just before the earnings came out, there was a story that Devon had sold $2.8 billion of its Canadian interests. Later, we learn that the assets are "non-core" assets. I haven't bothered to look at what assets are being sold; maybe they are worthless; who knows. All I know is that Devon is selling $2.8 billion of its Canadian assets. It doesn't surprise me, what with the Keystone debacle.
Then, surprise, surprise: the Nebraska folks are asking for a "do-over." It seems everyone wants a "do-over" when it comes to fossil energy. Whatever. But the Keystone XL 2.0 North is more dead than it was 24 hours ago. There are few things that can be "more dead" in life, but the Keystone is one of them things.
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I thought disco was dead. This takes me back to a great disco night at an air force base in the Netherlands (Europe) in the late 1980's or early 1990's.
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Devon, in the press release, it was also mentioned that the company increased its proved oil reserves to the highest level in company history. That sorta jumps out at you.
The press release continued:
- Permian Basin: record production (the Permian was supposed to be a "dying" field)
- Anadarko Basin: record production
- Mississippian-Woodford Trend: a 47% increase over comparable previous period
- Barnett shale: a 17% net increase in natural gas production
- Canadian thermal oil: a 16% net increase in net production
Bottom line: a North Ameircan-focused company hitting on all cylinders in multiple shale plays, in both oil and natural gas.
A huge story for a company that I don't follow, that has no operations in the Bakken, and is getting record production in a 50-year-old Texas field that was supposed to be dead or dying.
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