1 Key Driver for Devon Energy's Future
Investors in Devon Energy are probably pretty pleased with the pipeline partnership deal it just inked with Crosstex Energy, but investors need to know what Devon must do to remain successful past this one-off agreement. For the natural gas and oil producer to stay on top of the U.S. shale drilling game, it will need to shift its focus away from the Barnett shale to the Permian Basin.
Both Devon and Pioneer Natural Resources have been pulling out of the Barnett recently for good reason -- the economics for wells just aren't there based on today's gas prices. So Devon and Pioneer have set their sights on the Permian instead. Devon already has a major presence in the Permian, so ramping up activity there should be easier than at many of its other holdings across the country. In the video below, Fool contributor Tyler Crowe discusses the other reasons why Devon will need the Permian going forward.
Who Will Join Devon in Dominating the American Energy Boom?
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The article 1 Key Driver for Devon Energy's Future originally appeared on Fool.com.
Fool contributor Aimee Duffy has no position in any stocks mentioned. Fool contributor Tyler Crowe has no position in any stocks mentioned. You can follow them both on Twitter: @TMFDuffy and @TylerCroweFool, respectively. The Motley Fool owns shares of Devon Energy. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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