Movement Alert｜Devon Energy Rises 3.8% in Regular Trading, $8 Billion Offer for Marcellus Shale Assets Boosts Sentiment

Market Focus06-01

On June 1, Devon Energy rose 3.8% in regular trading, trading at $46.62/share, with trading volume of $96.458 million. The rally was driven by news that asset management firm Stone Ridge submitted an approximately $8 billion acquisition offer for Devon Energy's Marcellus shale assets in Pennsylvania.

According to people familiar with the matter, Stone Ridge made the offer to initiate deal negotiations with Devon. The acquisition is planned to be funded through what would be the largest asset-backed securities financing in US oil and gas industry history. Devon has not yet made any decision regarding its Marcellus assets following its recent merger with Coterra Energy. Additionally, Devon's board has approved an $8 billion share buyback authorization, with the combination of potential asset monetization and buyback capacity expected to enhance remaining shareholder value.

Within the Oil & Gas Exploration & Production sector, the broader group rallied in tandem. Among individual stocks, Venture Global up 6.44%, Diamondback up 3.4%, EOG Resources up 2.2%, ConocoPhillips up 2.12%, EQT Corp up 0.75%. Barclays recently raised its price target on Devon Energy from $54 to $62, maintaining an Overweight rating, with consensus analyst target at $61.04.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment