DVN Upgraded to Outperform at Wells Fargo

Tuesday, June 3, 2014,

was Upgraded to Outperform by Wells Fargo. Wells Fargo analyst David Tameron said the upgrade was primarily based on a combination of of improving production visibility, peer leading EBITDA growth and debt adjusted cash flow per share, and attractive valuation. Tameron cites the improving production visibility should drive 20+ percent crude growth over the next few years, driven by Permian, Eagle Ford and Canada. Tameron also says the expanding margins and EBITDA expected to grow ~32 percent over the next few years, while posing debt-adjusted growth per share of ~8 percent in 2015 and ~12 percent in 2016; placing it near the top of large cap names. Tameron then proceed to set a new valuation range of $85-$90, which is largely reflective of his $87.79/share net asset value. DVN shares were up 0.80 percent to 74.28 from the previous day close of 73.69 at 9:32AM.