Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Thanks for the article! Looking at reserve replacement is a great way to see whether this energy company is just spinning its wheels (most of them have very low FCF), or if they're doing something for shareholders. At the end of 2007 one share of DVN gave you debt adjusted ownership of 3.8 Boe of reserves. At the end of 2010 it was 4.4 Boe, although most of the growth was in natural gas. So, indeed, they are improving things for shareholders. If they can keep that reserve replacement number at 200% and liquids heavy then that will make for a great stock.

However, they've been piling on debt so that is something to watch (and that's why I think one needs to debt adjust the per share reserves).
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.