Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>The fourth quarter earnings of Devon Energy showed promising indicators for the company's progress and future outlook.</li><li>The company highlighted four major themes in the update; their accomplishments in 2023, the positive projections for 2024 based on these successes, the valuable resources in their portfolio that underpin their growth, and the strategic priorities for allocating their free cash flow going forward.</li><li>Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.</li></ul>

The fourth quarter earnings of Devon Energy showed promising indicators for the company's progress and future outlook.The company highlighted four major themes in the update; their accomplishments in 2023, the positive projections for 2024 based on these successes, the valuable resources in their portfolio that underpin their growth, and the strategic priorities for allocating their free cash flow going forward.Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Devon Energy:  Enhancements In Bakken & Eagle Ford Resources & 5 Other Growth Drivers

<ul><li>Devon Energy Corporation delivered mixed results for the previous quarter, with revenues well below analyst expectations but managed earnings beat.</li><li>Their disciplined capital management during the quarter maintained reinvestment rates above 50% of cash flow, doubling free cash flow compared to the previous quarter.</li><li>We have added reasonable forecasts of the annualized income statement and cash flows and carried out a DCF valuation of the company using its Weighted Average Cost of Capital (WACC) to determine a forecasted share price.</li></ul>

Devon Energy Corporation delivered mixed results for the previous quarter, with revenues well below analyst expectations but managed earnings beat.Their disciplined capital management during the quarter maintained reinvestment rates above 50% of cash flow, doubling free cash flow compared to the previous quarter.We have added reasonable forecasts of the annualized income statement and cash flows and carried out a DCF valuation of the company using its Weighted Average Cost of Capital (WACC) to determine a forecasted share price.

Devon Energy Corporation: Reinvestment Strategy Paying Off – A Deep Dive Into Their Approach! - Major Drivers

<ul><li>Devon Energy Corporation delivered a mixed result in the quarter, with revenues above expectations, but the company failed to surpass the analyst consensus regarding earnings.</li><li>In terms of production, the company managed to increase oil volumes by 8% year over year this past quarter.</li><li>By averaging 323,000 barrels per day in the quarter, this outcome beat midpoint forecast estimates and created a new all-time high oil production high for the corporation.</li></ul>

Devon Energy Corporation delivered a mixed result in the quarter, with revenues above expectations, but the company failed to surpass the analyst consensus regarding earnings.In terms of production, the company managed to increase oil volumes by 8% year over year this past quarter.By averaging 323,000 barrels per day in the quarter, this outcome beat midpoint forecast estimates and created a new all-time high oil production high for the corporation.

Devon Energy Corporation: Surging Oil Volumes

<ul><li>Devon Energy managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.</li><li>Devon's effective cost management was evident, with capital expenditures in line with expectations and operating costs better than guidance.</li><li>The company generated over $665 million of free cash flow, marking the 11th consecutive quarter of positive cash flow.</li></ul>

Devon Energy managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.Devon's effective cost management was evident, with capital expenditures in line with expectations and operating costs better than guidance.The company generated over $665 million of free cash flow, marking the 11th consecutive quarter of positive cash flow.

Devon Energy Corporation: Futuristic Investment In Geothermal Tech Could Be A Game Changer? – Key Drivers

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<ul>
<li>We have discussed for weeks that we will need to see the SPX and Nasdaq 100 close below their 20-day MAs for 2-3 consecutive days in order to get cautious.</li>
<li>This still hasn't happened (short-term trend remains bullish). If we get 2-3 closes below the 20-dayMAs, next support would be 4983-5050 on SPX, $425-$433 on QQQ (gap supports from 2/22/24)</li>
<li>If some or all of these gaps remain unfilled, it is a sign that bulls remain in control. We are seeing a rotation into commodity Sectors, we highlight several buys</li>
</ul>


We have discussed for weeks that we will need to see the SPX and Nasdaq 100 close below their 20-day MAs for 2-3 consecutive days in order to get cautious.
This still hasn't happened (short-term trend remains bullish). If we get 2-3 closes below the 20-dayMAs, next support would be 4983-5050 on SPX, $425-$433 on QQQ (gap supports from 2/22/24)
If some or all of these gaps remain unfilled, it is a sign that bulls remain in control. We are seeing a rotation into commodity Sectors, we highlight several buys


Upgrading Materials to Market Weight; Rotation into Commodity Sectors; SPX/NDX Holding Above Support

United States

Devon Energy Corporation is an independent energy company that is involved primarily in oil and gas exploration, development and production, the transportation of oil, gas, and NGLs and the processing of natural gas. The Company also has marketing and midstream operations primarily in North America that include gas, crude oil and NGLs.

Devon Energy (DVN US)

Devon Energy: Enhancements In Bakken & Eagle Ford Resources & 5 Other Growth Drivers

The fourth quarter earnings of Devon Energy showed promising indicators for the company's progress and future outlook. The company highlighted...

Baptista Research

Devon Energy Corporation: Reinvestment Strategy Paying Off – A Deep Dive Into Their Approach! - Major Drivers

Devon Energy Corporation delivered mixed results for the previous quarter, with revenues well below analyst expectations but managed earnings...

Baptista Research

Devon Energy Corporation: Surging Oil Volumes

Devon Energy Corporation delivered a mixed result in the quarter, with revenues above expectations, but the company failed to surpass the analyst...

Baptista Research

Devon Energy Corporation: Futuristic Investment In Geothermal Tech Could Be A Game Changer? – Key Drivers

Devon Energy managed to surpass the revenue expectations as well as the earnings expectations of Wall Street. Devon's effective cost management...

Baptista Research

Upgrading Materials to Market Weight; Rotation into Commodity Sectors; SPX/NDX Holding Above Support

Upgrading Materials $XLB to Market Weight; Rotation into Commodity Sectors $XLE. $SPX and $QQQ holding above gap supports at 4983-5050 and $425...

Vermilion Research