7 billion in cash overseas. Won't use bring it here beause of taxes and no overseas operations to use it on!!! So, international company like Exxon or Conoco which needs more domestic exposure--- Devon is perfect. Great properties, lots of drill sites, shale etc and improving cash flow.
I agree. Devon should sell to a multinational that can find a use for the cash. Exxon has no growth and is very underleveraged - I can see a big Exxon acquisition in the future because it is the only way they will grow.
There are several E&P firms that an Exxon or Chevron could buy to boost their reserves. Devon or Apache could fill the bill, as well as other firms. However, its the fact that the net asset value of Devon's properties is estimated at $75 to $80 a share is what makes this stock attractive for longs without regard to any possible take-over action. The strong balance sheet and great assets is what I like compared to a Chesapeake that Icahn and other whales like. CHK is too gassy and too leveraged. But hey, if Icahn is right about Chesapeake, then I think I've hit a home run with Devon!