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Devon Energy & Chesapeake: Feeling the Oil Pinch



May 31, 2011 – Comments (0) | RELATED TICKERS: DVN , CHK

We have been pretty bullish on Devon Energy (DVN) lately, but this story reads a little differently. Devon definitely hit a low point, but I have faith it will make a come back. Check out the details provided by Paul Ausick.

"…Devon’s disappointing results stem from a pre-tax loss of $254 million on a change in the fair value of the company’s hedges. The derivatives loss mirrors yesterday’s announcement from Chesapeake Energy Corp. (NYSE: CHK), which posted a $725 million loss on its hedges. Another energy E&P company that posted a derivatives loss yesterday was Anadarko Petroleum Corp. (NYSE: APC). Anadarko, like Apache Corp. (NYSE: APA) and Occidental Petroleum Corp. (NYSE: OXY) produce more (higher priced) oil than do Chesapeake or Devon, and that is what made the difference."


Read the entire article here:

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