Intraday Alert: Devon Energy (DVN)

Posted in General 
June 25th, 2009

Devon Energy Corp. (NYSE: DVN) shares are rising on an intraday volume spike at about 10:40 a.m. Eastern, as market chatter circulates that the company could be considered an acquisition target of larger oil players such as Exxon Mobil (NYSE: XOM).

Devon shares have had strong price momentum in recent trading days. The company has proved developed reserves of  1.93 billion barrels of oil equivalent, and is geographically diverse in North America.

But the company trades at a higher multiple of price to cash flow as well as forward price to book value compared to peers including Chesapeake Energy Corp (NYSE: CHK), XTO Energy Inc. (XTO), Apache Corp (NYSE: APA) and Anadarko Petroleum (NYSE: APC), which may lead some market participants to believe that there are less expensive acquisition candidates, in the event that large oil exploration players are seeking growth. — Mike Tarsala.

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