Why Devon Energy (DVN) Is Higher on Wednesday

Tickers in this article: DVN

NEW YORK (TheStreet) -- Devon Energy  was higher on Wednesday after posting better-than-expected earnings and agreeing to sell a number of Canadian assets for a total $3.13 billion.

By late afternoon, shares had added 2.3% to $64.33. Trading volume of 8 million was more than double its three-month daily average.

The Oklahoma City-based oiler posted net income of $1.10 a share in the three months to December. Analysts surveyed by Thomson Reuters had anticipated net income of $1.08 a share.

Revenue of $2.62 billion was 1.6% higher year over year, but fell short of expectations by $65 million.

The company also agreed to sell some of its Canada-based conventional assets, excluding Horn River and heavy oil properties, to Canadian Natural Resources for $3.13 billion. The transaction is expected to close by April 1, subject to regulatory approval.

TheStreet Ratings team rates DEVON ENERGY CORP as a Hold with a ratings score of C. The team has this to say about their recommendation:

"We rate DEVON ENERGY CORP (DVN) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."