Investors in Devon Energy (NYSE: DVN ) 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 (NYSE: PXD ) 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.
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