Devon Energy (DVN 1.41%) 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?
Devon's move to acquire GeoSouthern gives this E&P name access to sexy shale, but is it joining the boom too late?
About the Author
John Licata is the Founder & Chief Energy Strategist of Blue Phoenix Inc. and the author of “Lessons from Frankenstorm: Investing for Future Power Disruptions”, a 2013 Wiley e-book on the future of energy post Sandy. His ability to cross-pollinate idea generation and analysis of both traditional and unconventional global energy markets has been documented in the global media for north of a decade by the likes of Bloomberg, CNBC, BNN, Yahoo! Finance, Reuters Insider and Fox Business Channel.
John is a proven Strategist with over fifteen years of commodity research experience and unique content creation which has made him a highly sought out public speaker for viewpoints related to the future of energy. Prior to launching Blue Phoenix Inc. in 2005, John held research and trading positions at Dow Jones, Salomon Smith Barney, BrokerageAmerica and on the floor of the New York Mercantile Exchange (NYMEX).
John graduated from Saint Peter’s University with a B.S. in Economics and he received his M.B.A. from the Executive MBA Program at NYU’s Leonard N. Stern School of Business.