Devon Energy Corporation, Oil and Gas Valuation Report

SUMMARY

Summary

Devon Energy Corp Company Valuation Report is the essential source for those interested in the investment outlook for Devon Energy Corp . The report provides exhaustive information on the areas of operations of the company as well as the market overview of the regions in which the company operates. The reports also provides detailed financial outlook of the company for the next five years along with the key financial and operational ratios. It also provides detailed asset by asset valuation of the company's oil and gas exploration blocks and oil and gas fields.

Scope

• Provides detailed information and analysis of areas of operations of the company.
• Provides detailed information regarding production and reserves of the company.
• Provides detailed analysis of the share price performance of the company as well as its comparison with the market and the peer group.
• Provides financial forecast for the company for the next five years.
• Provides asset by asset valuation (sum-of-parts) of the company along with the sensitivity analysis.
• Provides peer-group analysis based on share performance, operational and financial parameters.

Reasons to buy

• Make investment decisions relating to the company on the basis of detailed data relating to the company's forecast performance.
• Value the company by understanding the key drivers of the company's performance, its oil and gas reserves and forecast production.
• Use the information for strategy and planning, M and A identifications, and competitor analysis.

TABLE OF CONTENTS

1 Table Of Contents 2
1.1. List of Tables 6
1.1 List of Figures 7
2 Investment Summary 9
2.1 Barnett Shale Growth Story Continues 10
2.2 Gulf of Mexico Deepwater Provide Further Potential Upside 12
2.3 Lower F&D Costs And Higher Reserves Replacement Ratio 13
2.4 Strong Foundation for Growth 14
2.5 Disposal of West Africa Assets and Egyptian Properties 15
3 Company Overview 17
3.1 Strategy and Vision 18
3.2 Shareholding Structure 18
3.3 Production and Reserves 19
3.4 Exploration and Appraisal 22
3.5 Share Performance 24
3.6 Key Management 25
4 Operations Summary 29
4.1 United States 30
4.1.1 Overview 30
4.1.2 Production and Reserves 32
4.1.3 Exploration and Development 34
4.1.4 Outlook 35
4.2 Canada 36
4.2.1 Overview 36
4.2.2 Production and Reserves 37
4.2.3 Exploration and Development 38
4.2.4 Outlook 39
4.3 Azerbaijan 40
4.3.1 Overview 40
4.3.2 Production and Reserves 41
4.3.3 Exploration and Development 42
4.3.4 Outlook 42
4.4 China 43
4.4.1 Overview 43
4.4.2 Production and Reserves 44
4.4.3 Exploration and Development 45
4.4.4 Outlook 46
4.5 Brazil 46
4.5.1 Overview 46
4.5.2 Production and Reserves 48
4.5.3 Exploration and Development 48
4.5.4 Outlook 48
4.6 Russia 49
4.6.1 Overview 49
4.6.2 Production and Reserves 49
5 Financial Outlook 50
5.1 Income Statement (2005-2012) 51
5.2 Balance Sheet (2005-2012) 52
5.3 Cash Flow Statement (2005-2012) 53
5.4 Key Ratios (2005-2012) 54
6 Valuation 55
6.1 Sum-of-Parts Analysis 55
6.2 Discounted Cash Flow Valuation 58
6.3 Comparative Valuation 60
6.4 Sensitivity Analysis 62
7 Peer Group Analysis 63
7.1 Share Price Performance 63
7.2 Operational and Financial Performance 64
8 Key Risks 67
8.1 Crude oil and natural gas prices 67
8.2 Political Instability 67
8.3 Competition 67
8.4 Reserves and Drilling operations 67
9 Market Scenario 68
9.1 The United States 68
9.2 Reserves and Production 68
9.3 Imports and Exports 69
9.4 Infrastructure 69
9.5 Regulations 69
9.6 Key Fiscal Regime 69
9.7 China 71
9.7.1 Reserves and Production 71
9.7.2 Import and Exports 72
9.7.3 Infrastructure 72
9.7.4 Regulations 72
9.7.5 Key Fiscal Regime 73
9.7.6 Private versus State Participation 74
9.8 Brazil 74
9.8.1 Reserves and Production 74
9.8.2 Import and Exports 75
9.8.3 Infrastructure 75
9.8.4 Regulations 75
9.8.5 Key Fiscal Regime 76
9.8.6 Private versus State Participation 76
9.9 Azerbaijan 76
9.9.1 Reserves and Production 76
9.9.2 Import and Exports 77
9.9.3 Infrastructure 77
9.9.4 Regulations 78
9.9.5 Key Fiscal Regime 78
9.9.6 Private versus State Participation 78
9.10 Canada 79
9.10.1 Reserves and Production 79
9.10.2 Import and Exports 79
9.10.3 Infrastructure 79
9.10.4 Regulations 80
9.10.5 Key Fiscal Regime 80
9.10.6 Private versus State Participation 81
10 Appendix 82
10.1 Methodology 82
10.1.1 Coverage 82
10.1.2 Secondary Research 83
10.1.3 Primary Research 83
10.1.4 Forecasts 84
10.2 Key Economic Assumptions 86
10.3 Expert Panel Validation 87
10.4 Definitions 87
10.5 Unit Of Measure 88
10.6 About Global Markets Direct 89
10.7 Contact Us 89
10.8 Disclosure information 90
10.9 Disclaimer 90

1.1. List of Tables

Table 1: Barnett Shale, Operator by Net Acres, 2008 11
Table 2: Devon Energy Corporation, Gulf of Mexico Potential, 2008 12
Table 3: Devon Energy Corporation, Reserves Performance, 2005-2007 14
Table 4: Devon Energy Corporation, Resource Inventory, 2008 14
Table 5: Devon Energy Corporation, Properties Disposal Details, 2008 16
Table 6: Devon Energy Corporation, Key Corporate Events, 1971-2008 17
Table 7: Devon Energy Corporation, Shareholding Structure, 2008 18
Table 8: Devon Energy Corporation, Total Oil and Gas Reserves, 2003-2007 21
Table 9: Devon Energy Corporation, Acreage Position, 2003-2007 22
Table 10: Devon Energy Corporation, Well Data, 2003-2007 23
Table 11: Devon Energy Corporation, Acquisition, Development and Exploration Cost, 2003-2007 23
Table 12: Devon Energy Corporation, The United States Drilling History and Acreage, 2001-2007 35
Table 13: Devon Energy Corporation, Canada Drilling History and Acreage, 2001-2007 39
Table 14: Devon Energy Corporation, Azerbaijan Exploration and Production Assets Details, 2008 40
Table 15: Devon Energy Corporation, China, Exploration and Production Assets Details, 2008 44
Table 16: Devon Energy Inc., China Wells Drilled and Seismic Acquisition, 2004-2008 46
Table 17: Devon Energy Corporation, Income Statement ($ Million), 2005-2012 51
Table 18: Devon Energy Corporation, Balance Sheet ($ Million), 2005-2012 52
Table 19: Devon Energy Corporation, Cash Flow Statement ($ Million), 2005-2012 53
Table 20: Devon Energy Corporation, Key Ratios, 2005-2012 54
Table 21: Devon Energy Corporation, Summary of Target Price ($/share), 2008 55
Table 22: Devon Energy Corporation, Sum-of Parts DCF, 2008 56
Table 23: Devon Energy Corporation, Discounted Cash Flow, Key Assumptions, 2008 59
Table 24: Devon Energy Corporation, Discounted Cash Flow, 2008 59
Table 25: Devon Energy Corporation , Comparative Valuations, 2006 60
Table 26: Devon Energy Corporation, Valuation Sensitivity to Crude Oil Price (Per barrel) and Discount Rate (%), 2008 62
Table 27: Devon Energy Corporation Vs. Peer Group Operational and Financial Performance, 2007 64
Table 28: Canada, Provincial Corporate Income Tax , 2007 81
Table 29: Canada, Provincial Corporate Income Tax, 2007 81
Table 30: Brent Blend NYMEX Future Prices 86

1.2 List of Figures

Figure 1: Devon Energy Corporation, Gross Well Head Production By Operator, January 2007-December 2007 10
Figure 2: Devon Energy Corporation, Barnett Shale Net Production, MMboe, 2002-2007 11
Figure 3: Devon Energy Corporation, Barnett Shale Net Production, Mboe, 2002-2007 13
Figure 4: Devon Energy Corporation, Total Production and Reserves, 2001-2007 19
Figure 5: Devon Energy Corporation, Production Profile (MMboe), 2004-2012 20
Figure 6: Devon Energy Corporation, Proved Reserves (MMboe), 2007 21
Figure 7: Devon Energy Corporation, Share Performance, October 2004-April 2008 24
Figure 8: Devon Energy Corporation, Exploration and Production Assets Map, 2008 29
Figure 9: Devon Energy Corporation, The United States, Exploration and Production Map, 2008 30
Figure 10: Devon Energy Corporation, The United States, Proved Reserves, MMboe, 2000-2007 32
Figure 11: Devon Energy Corporation, The United States, Production, 2006-2007 33
Figure 12: Devon Energy Corporation, The United States, Proved Reserves, Mmboe, 2006-2007 33
Figure 13: Devon Energy Corporation, Canada, Exploration and Production Assets Map, 2008 36
Figure 14: Devon Energy Corporation, Canada, Production (MMboe), 2006-2007 37
Figure 15: Devon Energy Corporation, Canada, Reserves (MMboe), 2006-2007 38
Figure 16: Devon Energy Corporation, Azerbaijan, Exploration and Production Assets Map, 2008 40
Figure 17: Devon Energy Corporation, Azerbaijan, Proved Reserves and Production , MMboe, 2001-2007 41
Figure 18: Devon Energy Corporation, China, Exploration and Production Assets Map, 2008 43
Figure 19: Devon Energy Corporation, China, Proved Reserves and Production , MMboe, 2001-2007 45
Figure 20: Devon Energy Corporation, Brazil, Exploration and Production Assets Map, 2008 47
Figure 21: Devon Energy Corporation, Russia, Exploration and Production Assets Map, 2008 49
Figure 22: Devon Energy Corporation, Valuation per share, By Region, 2008 57
Figure 23: Devon Energy Corporation , EV/EBITDA, 2008 61
Figure 24: Devon Energy Corporation Vs. Peer Group Share Price Performance, April 2006-April 2008 63
Figure 25: Devon Energy Corporation , Reserve Vs. Peer Group, MMboe, 2007 65
Figure 26: Devon Energy Corporation , Production Vs. Peer Group, MMboe, 2007 65
Figure 27: Devon Energy Corporation, F&D costs and Reserve Replacement Ration, 2005-2007 66
Figure 28: The United States, Crude Oil and Natural Gas, Production and Consumption, 1996-2007 68
Figure 29: China, Crude Oil and Natural Gas, Production and Consumption, 1996-2007 71
Figure 30: Brazil, Crude Oil and Natural Gas, Production and Consumption, 1996-2007 74
Figure 31: Azerbaijan, Crude Oil and Natural Gas, Production and Consumption, 1996-2007 77
Figure 32: Canada, Crude Oil and Natural Gas, Production and Consumption, 1996-2007 79
Figure 33: Global Markets Direct Methodology 82