Devon Energy's Plan to Repurchase Stock Highlights Bargain Opportunity

Sunday, 3 March 2024, 13:43

Devon Energy is shifting its focus to repurchasing its undervalued shares, as CEO Rick Muncrief highlights the company's belief in its cheap stock valuations. The oil giant plans to increase its free cash flow by 20%, leveraging efficiency gains and growing demand for oil and gas. With the sector trading at historic lows and Devon leading the charge in buybacks, investing in the company's discounted shares could offer significant returns in the long term.
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Devon Energy's Plan to Repurchase Stock Highlights Bargain Opportunity

Devon Energy's Valuation Strategy

The oil company prioritizes repurchasing shares over variable dividends to capture value.

Key Highlights:

  • Efficiency Boost: Cutting capital expenses by 10% to grow free cash flow by 20%.
  • Valuation Discount: Trading at a 9% free-cash-flow yield, 3x that of broader markets.
  • Repurchase Program: Retiring 6% of outstanding shares with plans for more.

Devon Energy believes that with growing energy demand and discount valuations, buying back shares is a strategic move to enhance value for shareholders in the long term.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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