Oppenheimer Downgrades Devon Energy (DVN) to Perform

Oppenheimer downgraded Devon Energy (NYSE: DVN) from Outperform to Perform.

Analyst Fadel Gheit commented, "We are downgrading DVN to Perform from Outperform and removing our $70 price target. Despite higher oil and gas prices, we expect that 2016 results will trail weak 2015, which is masked by hedging gains. Based on 2015 and 2016 strip prices of $57.14/b and $62.84/b WTI, $62.17/b, $69.22/b Brent, and $2.87/mcf and $3.19/mcf gas, we estimate operating cash flow of $4.7B and $4.1B and $656M proceeds from MLP unit issuance will partially fund $4.8B and $4.7B CAPEX, $402M acquisition, $394M dividend and $410M and $876M MLP distribution. DVN could face cash flow shortfalls of $905M and $1.9B, respectively, before MLP unit issuance and acquisitions, and $651M and $1.9B inclusive of these items."

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 $62.46 yesterday.

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