If You Invested $10,000 in Devon Energy a Year Ago, This Is How Much You Would Have Today
If you bought Devon Energy (NYSE: DVN) one year ago you would have turned a $10,000 investment into roughly $6,500. That's a very disappointing performance, but you need to make sure you really understand what's going on before you pass any judgment here. Devon Energy is not a bad energy company, it just comes with different risks.
At its core, Devon is a pure-play producer of oil and natural gas with a focus on the U.S. market. It has paid a dividend every quarter since it started paying a dividend in mid-1993, showing a commitment to returning value to investors via reliable dividends. It has an investment grade rated balance sheet, highlighting that management is financially conservative. And its production costs are comfortably below the industry average, which suggests a strong operating model.
And still, the energy company's top and bottom lines are almost entirely dependent on the price of these commodities. The problem with that is, while vital to the global energy picture, oil and gas are prone to huge price swings. And those swings often occur fairly rapidly. Put simply, Devon's performance can be volatile at times despite it being a well-run energy producer.
Source Fool.com
