Shares of Devon Energy Corporation rose after reports emerged that the U.S. shale producer had received an approximately $8 billion offer for its Marcellus natural gas assets, potentially accelerating efforts to streamline its portfolio following its recent merger with Coterra Energy.
According to a Reuters report cited by RBC Capital Markets, investment manager Stone Ridge Asset Management submitted the proposal as an opening step toward discussions with Devon regarding a potential transaction. The offer remains unconfirmed, and Devon has not publicly commented on the report.
Analysts at RBC described the development as a positive signal for investors who have been seeking greater portfolio focus from Devon following its merger earlier this month. The brokerage believes the company's Marcellus and Anadarko assets are among the most likely candidates for monetization as management reviews its asset base.
The reported valuation implies roughly $4,000 per Mcfe of flowing proved developed producing reserves, a premium to recent natural gas transactions that have averaged closer to $3,000 per Mcfe, according to RBC.
RBC maintained its Sector Perform rating on Devon with a $59 price target, citing the company's asset value and earnings outlook. The firm noted that successful asset sales could help sharpen Devon's strategic focus and unlock shareholder value, although commodity price volatility remains a key risk to the company's outlook.
source https://www.investing.com/news/stock-market-news/devon-energy-gains-as-reported-8-billion-marcellus-bid-signals-portfolio-value-4717938
