On April 12, Bill Perkins, CEO of Skylar Capital Management, appeared to “close the hours of the bell” in CNBC to talk about how the energy sector is fighting due to fears of decrease in fuel demand. Perkins argued that commercial policy mainly drives the feeling through the energy landscape and, therefore, affects natural gas, energy stocks, good and other related assets. By pointing out the difficulty of predicting the long -term result of these policies, he asked if the rates are temporary. The conversation happened to the impact of recent fares. Perkins acknowledged that natural gas prices initially worked better than other goods after ads, which results in speculations that the LNG could become a key bargaining chip in future trade negotiations. He explained that at that time, the foundations of natural gas were strong and the United States had the potential to use GNL exports as a diplomatic tool to help reduce commercial deficits with other countries.
However, Perkins acknowledged that general macroeconomic fear of a global slowdown soon overshadowed these foundations, which affected both the raw and natural gas markets. As a result, prices went down to levels that could stimulate some demand and offer a cushion against more falls, especially if the fare conflict rises and risks pushing the economy to a recession or even a depression. Perkins also addressed the effect of production price pressure, specifically referring to the intermediate raw of West Texas Intermediate (WTI). He said that WTI prices had reached a threshold (~ $ 60 per barrel) where growth in the Permian basin would be detained or even decreased. At these levels of price, producers are reluctant to invest in a new perforation, especially considering the curve backward, which showed future prices of 58 to $ 59 per barrel. This scenario would not only limit the growth of oil production in the Permian, but would also reduce the production of natural gas associated with the region. Perkins described this containment of production as an upward factor that could help make up for part of the prevailing uncertainty.
Perkins predicted that oil and gas executives would take a wise tone in their comment. He explained that due to the unforeseen events of the global macro environment, executives would allow market signals to guide their decisions on how to increase or reduce drilling programs.
We first went through the database of Finviz Stock Screenner and Insider Monkey Q4 2024. For this article, we define the stocks of small layers such as those that sell $ 10 billion and 30 billion. Then we selected the 15 best actions according to the coverage funds and classified them in an ascending order of the number of coverage funds that are bets. In cases when an equal number of coverage fund contained two or more actions, we used the market lid as a tiebreaker.
Why are we interested in the stocks that cover the funds? The reason is simple: our research has shown that we can overcome the market by imitating the best stock options for the best coverage funds. The strategy of our quarterly bulletin selects 14 stocks of small layers and large layers each quarter and has returned 373.4% since May 2014, surpassing its reference point at 218 percentage points (sEE More details here)).
Devon Energy Corp. (NYSE: DVN) Is it buying energy coverage funds in small layers?
A group of Hazmat’s technicians who inspect a natural gas storage tank.
Market capitalization from April 25: $ 20.35 billion
Number of coverage fund holders: 55
Devon Energy Corp. (NYSE: DVN) Explore, develop and produce oil, natural gas and natural gas. It works in the Delaware basin south -East Mexico and West Texas, Eagle Ford located in North America, the Anadarko basin located west of Oklahoma, the Williston Basin located in North Dakota and the Powder River Basin located in Wyoming.
In the fourth quarter of 2024, Devon’s oil production reached a maximum of 398,000 daily barrels, which was promoted by his Eagle Ford Wells. The company also ended an agreement with BPX to dissolve its association in the Blackhawk field, which consolidates Devon’s control over ~ 46,000 hectares net at Dewitt County. The Aguila Ford Asset has about 550 of the 700 non -deployed locations of the company. Devon’s general oil and gas production reached 848,000 BOE a day in the fourth quarter.
The company’s total revenue reached $ 4.4 billion, increasing 6.22% year -on -year. and above estimates of more than $ 155.3 million. EPPs of the company of $ 1.16 also exceeded expectations in $ 0.16. It is expected that the production prospects of 2025 for Eagle Ford will be 383,000 BOE per day, while the general objective of the company is 815,000 BOE per day. On February 19, Mizuho Securities raised Devon’s target to $ 49 from $ 47, maintaining a higher rating.
Generally, DV Rankes 5th In our list of energy coverage funds in small layers they buy. Although we recognize the potential for DVN growth, our conviction lies in the belief that the AI actions have a great promise to obtain high returns and to do it in a shorter period. There is an AI stock that increased since the beginning of 2025, while the popular AI actions lost around 25%. If you are looking for a stock of Ia more promising than DVN but you are quoting less than 5 times, see our report on the Ia stock cheap.
