Devon Energy Completes Acquisition of Eagle Ford Assets from GeoSouthern Energy
February 28 2014 - 3:15PM
Business Wire
Devon Energy Corporation (NYSE:DVN) today completed its
previously announced acquisition of Eagle Ford assets from
GeoSouthern Energy. Devon has acquired 82,000 net acres located in
DeWitt and Lavaca counties in Texas. This world-class light-oil
position is delivering outstanding well results offering some of
the highest rate-of-return drilling opportunities in North
America.
“Our Eagle Ford acquisition is one of several bold steps we have
recently taken to upgrade our portfolio and improve the growth
trajectory and profitability of our business,” said John Richels,
president and chief executive officer. “We were able to acquire
these premier Eagle Ford assets at a price well below our current
EBITDA multiple, resulting in immediate accretion to Devon
shareholders on virtually every metric, including cash flow per
debt-adjusted share.”
Devon plans to invest approximately $1.1 billion in the Eagle
Ford this year and will drill more than 200 wells. For its 10
months of ownership in the play this year, the company’s net
production is expected to average between 70,000 and 80,000 barrels
of oil equivalent per day. With the majority of Devon’s Eagle Ford
acreage derisked, this opportunity provides low-risk, repeatable
oil growth for years to come.
Devon Energy Corporation is an Oklahoma City-based independent
energy company engaged in oil and gas exploration and production.
Devon is a leading U.S.-based independent oil and gas producer and
is included in the S&P 500 Index. For additional information,
visit www.devonenergy.com.
This press release includes "forward-looking statements" as
defined by the Securities and Exchange Commission (SEC). Such
statements are those concerning strategic plans, expectations and
objectives for future operations. All statements, other than
statements of historical facts, included in this press release that
address activities, events or developments that the company
expects, believes or anticipates will or may occur in the future
are forward-looking statements. Such statements are subject to a
number of assumptions, risks and uncertainties, many of which are
beyond the control of the company. Statements regarding future
drilling and production are subject to all of the risks and
uncertainties normally incident to the exploration for and
development and production of oil and gas. These risks include, but
are not limited to, the volatility of oil, natural gas and NGL
prices; uncertainties inherent in estimating oil, natural gas and
NGL reserves; the extent to which we are successful in acquiring
and discovering additional reserves; unforeseen changes in the rate
of production from our oil and gas properties; uncertainties in
future exploration and drilling results; uncertainties inherent in
estimating the cost of drilling and completing wells; drilling
risks; competition for leases, materials, people and capital;
midstream capacity constraints and potential interruptions in
production; risk related to our hedging activities; environmental
risks; political changes; changes in laws or regulations; our
limited control over third parties who operate our oil and gas
properties; our ability to successfully complete mergers,
acquisitions and divestitures; and other risks identified in our
Form 10-K and our other filings with the SEC. Investors are
cautioned that any such statements are not guarantees of future
performance and that actual results or developments may differ
materially from those projected in the forward-looking statements.
The forward-looking statements in this press release are made as of
the date of this press release, even if subsequently made available
by Devon on its website or otherwise. Devon does not undertake any
obligation to update the forward-looking statements as a result of
new information, future events or otherwise.
Devon Energy CorporationInvestor ContactsScott Coody,
405-552-4735orShea Snyder, 405-552-4782orMedia ContactChip Minty,
405-228-8647
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