Devon Energy Insiders Buy More Than $1 Million Worth of Stock After Share Price Fall
Insider trades can give investors a more complete view of activity within the world’s publicly-listed companies. No one has more information in relation to a company’s prospects than its executives and directors.
In this report, we are going to highlight some interesting insider buying at Devon Energy (DVN:US). Devon Energy is an independent oil and natural gas exploration and production company that is focused on onshore operations in the US. It is listed on the New York Stock Exchange and currently has a market cap of approximately $35.79 billion.
Insider Buying at Devon Energy
2iQ data shows that between February 17 and February 22, two insiders at Devon purchased stock. Those who bought shares were:
CEO Richard Muncrief (15,000 shares @ 53.14 per share)
Board member John Bethancourt (4,706 shares @ 53.04 per share)
Combined, the insiders invested around $1.05 million in the company.
Both Mr. Muncrief and Mr. Bethancourt have considerable experience in the energy industry.
Mr. Muncrief was elected as CEO of the company in January 2021 following Devon’s merger with WPX Energy. Previously, he was CEO of WPX. Before this, he worked at Continental Resources, Quest Midstream Partners, and ConocoPhillips. Currently, he serves on the board of directors and the executive committee of the American Petroleum Institute.
Mr. Bethancourt – who joined the board of directors in January 2014 – is a retired Chevron executive. Previously, he was Executive Vice President for Technology and Services at Chevron, where he oversaw the group’s environmental, health and safety efforts, major project management, procurement, and mining operations.
Given their backgrounds, these insiders are likely to have a good understanding of Devon’s prospects.
Share Price Fall
Devon shares took a hit recently after the company missed fourth-quarter earnings estimates.
For the quarter, adjusted earnings came in at $1.66 versus the consensus forecast of $1.75. Severe cold weather in the US, which impacted production, and higher personnel expenses were to blame for the below-par earnings.
However, there were plenty of positives in the Q4 results.
For starters, operating cash flow totaled $1.9 billion for the quarter, an 18% increase versus the same period a year earlier. This level of cash flow funded all capital requirements and resulted in $1.1 billion of free cash flow. For the full-year 2022, Devon’s free cash flow was $6.0 billion, representing the highest amount in the company’s 52-year history.
Secondly, the Board approved an 11% increase to the fixed quarterly dividend in 2023. This suggests that management is confident about the future.
“2022 was another year of outstanding accomplishment for Devon that resulted in record-setting operating results and the best financial performance in our company’s prestigious 52-year history,” commented Mr. Muncrief.
“As I look to 2023, there will be no change to our disciplined approach to the business. We have designed a capital program to efficiently sustain production, deliver high returns on capital employed and generate significant free cash flow that can once again be harvested for shareholders,” he added.
The buying from insiders here suggests that those within the company expect the stock to rebound.
We see the insider buying as a bullish signal.
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