Devon Energy Corp (DVN)

pinti (< 20) Submitted: 12/20/07 1:41 PM : Start Price: $87.64 DVN Score: 14.70

Devon is one of the five largest leaseholders of promising deep-water Gulf of Mexico properties where recent discoveries in deeper Lower Tertiary zones have generated excitement in the oil sector. Devon has a host of new projects slated to come online over the next few years, which should meaningfully boost production.



There are plenty of bright spots in 2008 Reserve replacement, which keeps the E&P engine from running out of gas, looks rock-solid at upwards of 150% of production. Also, Devon's per-barrel finding costs are actually guided downward in 2008. While I wouldn't claim that cost inflation has been whipped, Devon demonstrates that it's possible for independent E&Ps to keep costs in check in the year ahead.

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