On January 30, 2018 Cole Davis pitched Devon Energy (NYSE: DVN) to be added to the SMIF Portfolio. Devon is an upstream oil and gas production company with operations in seven primary basins across North America including the Permian, STACK, Eagle Ford, Heavy Oil, and several Rocky Mountain basins. While Devon saw a steep decline in stock price and enterprise value as a result of the collapse of oil prices between 2014 and 2016, they are poised to make a strong recovery from these lows moving forward. Cole is confident that Devon’s management will be able to grow their current production through capital expenditures in the STACK play and Permian basin funded by free cash flow produced by the company’s Heavy Oil and Eagle Ford projects. Cole is confident that Devon’s management will be able to develop their premium positioning in prolific unconventional basins to further outperform their peers’ production. He is also confident in the company’s ability to reduce operating costs and provide economic production in low price environments. Finally, Cole believes that Devon’s developments in their STACK and Permian basin positions within their free cash flow will allow some level of protection from having to raise equity or debt to aggressively expand. This spending control will also provide a means for Devon to return cash to shareholders through dividends as well as fund the repayment on Devon’s current debt. Ultimately, Cole pitched the purchase of 325 shares of Devon through the sale of 175 shares of Anadarko Petroleum (NYSE: APC) and 12 shares of SPY, which passed unanimously.