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Strategies & Market Trends : Value Investing
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To: Spekulatius who wrote (51532)5/12/2013 11:18:42 PM
From: E_K_S   of 78746
 
Devon Energy Corporation (DVN)

Looks like McDep has $102.00/share as their Net Present Value estimate. At the current price of $59.00/share that's a 96% discount to their fair value estimate. Even my conservative GN$ calculates a $63.37/share "fair value" reflecting a 7.3% discount to it's current price. Based on your $7B market cap estimate for the MLP assets that works out to be $17.24/share.

Selling a portion of my ERF and PWE holdings into some DVN may be a good move. Both companies have acreage in the same region.

( Here is the link to the entire review dated 1/8/2013)



I scanned the Big Dog's Boom Boom thread and found these two recent articles on DVN. All state the bullish case and there is definitely value in the assets they own.

(Thanks to Dennis Roth for his timely posts)

Devon Energy Corp (DVN)
Alert: Meeting With Mgmt In OKC Highlights Key Challenges
2 January 2013 ¦ 8 pages
goo.gl

Devon Energy Corp (DVN)
Signs of A Pulse and Much More; Repatriation Surprise
01 May 2013, 11 pages
goo.gl

I like the idea of creating a MLP for their Midstream Assets. DVN operating as the general partner can benefit from both as a seller and as the operator. I will look at starting a position and this one I can add to my MLP pot.

Thank's for the idea.

EKS
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