Meanwhile, Devon's "superior financial footing should help the firm weather the current low gas price environment and provide flexibility to both aggressively develop existing inventory and capture acreage in emerging plays," according to a Morningstar report. Devon had 59.6% exposure to natural gas and 40.4% exposure to oil as of January, according to Fidelity Capital Markets data.
"Should gas double and oil keep going up to $120 and $130, Devon and Chesapeake as more balanced companies will see benefits on both sides," says Kay of S&P. "If gas doubles or triples, that's going to be an extra bonus for them."Devon shares closed Friday at $73.73, down nearly 20% in the past year. The stock trades at a forward price-to-earnings multiple of 10X, and has an annual dividend yield of 1.1% at current levels. Check out TheStreet's quote page for Devon Energy for year-to-date share performance, analyst ratings, earnings estimates and much more.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV