5 Reasons Devon Energy Is A Better Buy Than Chesapeake

Chesapeake Energy (CHK) preferred stock is one of the largest positions in my portfolio and with the recent sell-off in energy names, I considered adding CHK common stock but instead chose to open a position Devon Energy (DVN). The two companies share a similar profile:

  • Headquartered in Oklahoma, operating in the onshore North American market
  • Known primarily as natural gas plays (perhaps misleadingly so, in the case of Devon)
  • Are the two biggest players in the Barnett Shale, the play that kicked off the major shale rush of the last few years
  • List around 2.9 billion barrels of oil equivalent (BBOE) in proved reserves
  • Share roughly equivalent enterprise values (CHK = $27B, DVN = $25B)

The two stocks even delivered similar (negative) returns over the last five years:

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