TD Cowen notes a news report that says Devon (DVN) is in talks to acquire Enerplus (ERF). While the firm anticipated more Delaware expansion for Devon, the analyst says that Enerplus could add needed scale in the Bakken and increase capex efficiency in the region. Given the differences in the stocks’ valuation multiples at strip, the firm sees a path “for natural accretion given the ability to finance with cash on hand” and generated free cash flow, adds the analyst, who has a Market Perform rating and $48 price target on Devon Energy shares.
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