Citigroup Reiterates Buy, $75 PT on Devon Energy

Citigroup maintains its Buy rating and $75 target price on Devon Energy (NYSE: DVN) as Canadian oil and US NGLs drive growth into 2012.

Citi notes, “Most of Devon's production growth next year should come from two regions: Canadian oil sands driven by the Jackfish 2 ramp-up, and growing domestic NGL volumes as it expands its Permian operations. U.S. natural gas output is also projected to rise year-over-year even as Barnett gas should grow by only 3-4% due to its high proportion of the overall production mix. In contrast, U.S. gas output was the largest source of growth in 2011, driven by Barnett activity.”

DVN closed at $66.56 per share on Friday, up 4.44 percent.