UBS reiterated a Sell rating on Devon Energy (NYSE: DVN), and raised the price target to $43.00 (from $37.00), following the company's 3Q earnings results. 3Q EPS of $0.76 was well above consensus of $0.52. CFPS of ~$2.64 was roughly in line with consensus. DVN raised its '15 prod'n guidance from 650-684 MBoed to 676-681 MBoed with oil volumes now increasing 31-33% YoY.

Analyst William Featherston commented, "Clean 3Q EPS of $0.76 was well above consensus & UBSe of $0.52 & 0.49, respectively; meanwhile, CFPS of ~$2.64 was roughly in line with consensus. Relative to UBSe, the beat was driven by higher production & much lower than expected costs. Core 3Q volumes rose 6% YoY to 680 MBoed, above guidance of 638-677 MBoed & consensus of ~666 MBoed on stronger than expected Canadian heavy oil volumes. Price realizations fell 24% YoY to $5.34/Mcfe but were 2% above UBSe. Unit costs fell 12% YoY to $4.47/Mcfe & were 9% below our forecast. We raised our '16-17E CFPS from $5.65/$9.60 to $6.25/$10.35 on slightly higher production & lower cost guidance."

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Shares of Devon Energy closed at $45.22 yesterday.