Topic: How To Invest

Power Growth Investor Hotline – Friday, July 12, 2024

Article Excerpt

DEVON ENERGY CORP., $46.48, is a buy for aggressive investors. The company (symbol DVN on New York) is a leading producer of oil and natural gas from wells in Wyoming, Texas, Oklahoma and New Mexico. Devon continues to use acquisitions to expand its operations in its core areas. The company has now agreed to acquire Grayson Mill Energy for $5 billion. That firm is an oil-and-gas producer in the Williston Basin in western North Dakota and eastern Montana. Oklahoma City-based Devon will pay $3.25 billion in cash and $1.75 billion in stock to acquire Grayson Mill. Devon reports that the acquisition will add immediately to its earnings and cash flow as it expands its position in the Williston Basin by more than 307,000 acres. Production from the acquired acreage is expected to hit about 100,000 barrels of oil a day in 2025. That will boost its output to an average of 765,000 barrels of oil equivalent per day from 664,000 barrels. Devon Energy…