Oppenheimer Lowers PT on Devon Energy (DVN) on Lower Natural Gas Prices

Oppenheimer lowered its price target on Outperform-rated Devon Energy (NYSE: DVN) from $75 to $67 primarily due to lower US natural gas prices.

"DVN's earnings and cash flow are highly leveraged to US natural gas prices," the analyst notes. "It has 38% of its estimated 2013 gas production hedged at $3.90/mcf and 10% of its 2014 gas volume hedged at $4.09/mcf. DVN has $6B in foreign bank accounts and is waiting for potential tax reform before repatriating this cash, which could be used to fund a large buyback program to boost its stock price. DVN shares do not reflect any takeover premium, as they are 55% below their 2007 peak. Our estimates reflect updated commodity prices."

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 $54.14 yesterday.

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