Argus raising Devon Energy earnings estimates on higher production

Argus analyst Bill Selesky keeps a Buy rating and $71 price target on Devon Energy but raises the firm’s FY24 EPS view by 27c to $5.26. The firm is citing the company’s upwardly revised production guidance while noting that Devon offers a “competitive advantage” thanks to its top-tier assets located in shale-rich basins in the U.S. with low extraction costs, the analyst tells investors in a research note. Devon has increased its FY24 production forecast by 2%, to a range of 655,000-675,000 barrel per day, and the incremental production is expected to be delivered without an increase in capital spending, Argus added.