Apr. 14 at 3:25 PM
$DVN stock price drop across the oil/natty sector driven primarily by the IEA forecast for the remainder of 26 released this morning. It predicts a contraction going fwd of 73k bbl/day due to demand destruction from the war and SOH closure. This contrasts the previous forecast of an increase of 730k bbl/day-net decrease of 830k bbl. This is driving the paper future prices of oil down. Does this mean DVN is going to cut its production from 387 bbl/day? Doubtful. Do the math-387k bbl/day x 40 bbl profit (
$45 break even/
$85 assumed March through July) x 30 days =
$2.33B just through July, doesn’t take into account Natty or CTRA merger. This is not a
$45 stock.
