Devon Energy (DVN -0.51%) recently announced it was buying GeoSouthern's Energy Corp's Eagle Ford assets for $6 billion. Devon has been a company in transition in recent years and investors have been waiting for the company to open its wallet and bolster its position in shale. However, I'm not as giddy on the deal as others. My issue with the move is really two-fold: Did Devon overpay for the assets, and is the company late to the shale boom?
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Devon's move to acquire GeoSouthern gives this E&P name access to sexy shale, but is it joining the boom too late?
John Licata has no position in any stocks mentioned. The Motley Fool owns shares of Devon Energy. 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.
Stocks Mentioned
Devon Energy
DVN
$33.24
(-0.51%)
$0.17
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