- Earlier in 2022, Devon Energy marked a new chapter with a pivot towards dividends, which thus far has been very profitable for their shareholders.
- Unsurprisingly, the first half of 2022 saw extremely strong free cash flow on the back of booming oil and gas prices. They have followed this cash windfall with an acquisition spree, recently announcing two additions.
- This helps lift their free cash flow and thus dividend outlook relatively higher and thus helps offset a degree of the downside if oil prices keep softening.
- As this does not levy too great of a cost upon their financial position, it creates a rare win-win for their shareholders and thus I believe that maintaining my buy rating is appropriate.
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Devon Energy:
- market cap: $45 billion
- p/e: 8.68 (thank you, ESG)
- dividend: 6.8% (would be higher if share price had not appreciated so much -- darn it, all)
Others:
- EOG: $73 billion; 12.7; 2.43%
- PXD: $57 billion; 9.91; 10.62%
- CVX: $313 billion; 10.69; 3.55%
- OXY: $61 billion; 6.45; 0.79% (you can see why Buffett continues to accumulate OXY)
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