Devon Energy to Offer Stock to Boost Liquidity

Devon Energy Corp. said Wednesday that it plans to sell shares valued at about $1.12 billion, intending to use proceeds to help its liquidity position, reduce debt and fund its capital program.

The Oklahoma City oil-and-gas producer said it would offer at least 55 million shares.

That plan comes a day after the company said it would cut its workforce by 20%, slash its dividend and pare spending as depressed energy prices continue to weigh on the company.

Oklahoma City-based Devon has spent years cutting its holdings to focus on North America, and in December agreed to buy a combined 333,000 acres in Oklahoma and Wyoming for $2.5 billion. The company has said it plans to sell some other acreage, as well as pipelines in Canada, for up to $3 billion.

In after-hours trading, shares were down 4.8% to $19.35.

Write to Josh Beckerman at josh.beckerman@wsj.com

(END) Dow Jones Newswires

February 17, 2016 17:15 ET (22:15 GMT)

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