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Devon Energy Fell 8% in September: Can It Regain Upward Momentum?

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Sep. 28 2018, Updated 2:22 p.m. ET

Devon Energy’s recent performance

Devon Energy (DVN) has been sluggish over the past month despite the gains in crude oil and natural gas prices. DVN fell 8% in September, while crude oil and natural gas gained 2.5% and 3.6%, respectively.

Crude oil formed ~45% of Devon Energy’s average daily production in the second quarter of 2018, with ~20% for NGLs (natural gas liquids) and ~35% for natural gas. Liquids formed ~65% of DVN’s average daily production in the second quarter.

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The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) has risen 2% this month. The recent sluggishness in DVN could be mainly attributed to uncertainty about the company’s growth prospects following the recent asset divestiture, low production growth, and a decreased exposure to the prolific Permian Basin with asset divestitures.

Devon Energy’s YTD performance

DVN stock has fallen 4.9% since the start of this year. US crude oil has increased 18.5%, and natural gas has risen 2.3%. DVN’s peers Anadarko Petroleum (APC) and EOG Resources (EOG) have risen 24% and 17.7%, respectively, YTD (year-to-date). The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) has risen 16.2%. DVN is underperforming XOP by ~2,110 basis points.

Series overview

In this series, we’ll try to determine if Devon Energy can gain an upward momentum from here. We’ll look at its technical indicators and price forecasts. Then we’ll look at its recent institutional activity and analyst recommendations.

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