Simmons Raises Price Target on Devon Energy (DVN) Following Mississippian Divestiture

Simmons reiterated a Neutral rating on Devon Energy (NYSE: DVN), and raised the price target to $36.00 (from $31.00), following the company's recent divestiture of non-core Mississippian assets. The sale of Non-Core Mississippian Assets to White Star Petroleum, LLC for $200M is expected to close in 2Q'16.

Analyst David Kistler commented, "Following DVN's recent divestiture of non-core Mississippian assets, we are using this opportunity to increase our price target by $5/sh to $36/sh. Specifically, we: i) adjusted for the value of the transaction in our NAV, ii) increased the terminal rig count (2019 and beyond) in the Delaware to 12 from 8 previously, iii) lowered our STACK and Barnett LOE assumptions to match company disclosures and, iv) marked the company's ENLC/ENLK ownership to the April 22 close. Our earnings estimates remain unchanged."

For an analyst ratings summary and ratings history on Devon Energy click here. For more ratings news on Devon Energy click here.

Shares of Devon Energy closed at $35.20 yesterday.

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