Devon Energy Announces Sale of Non-Core Mississippian Assets
April 20 2016 - 09:00AM
Business Wire
Devon Energy Corp. (NYSE:DVN) announced today it has entered
into a definitive agreement to sell its non-core Mississippian
assets in northern Oklahoma to White Star Petroleum, LLC for $200
million. The transaction is subject to customary terms and
conditions and is expected to close in the second quarter of 2016
with an effective date of Jan. 1, 2016.
“This is another important step in executing on our plan to
divest $2 billion to $3 billion of non-core assets across our
portfolio during 2016,” said Dave Hager, president and CEO.
“Proceeds will be used to further strengthen our investment-grade
balance sheet. Additionally, this timely transaction accelerates
Devon’s efforts to focus exclusively on its best-in-class resource
plays in onshore North America.”
Net production from the Mississippian assets averaged 12,800
oil-equivalent barrels (Boe) per day in the first quarter of 2016,
of which approximately 30 percent was oil. At Dec. 31, 2015, proved
reserves associated with these properties amounted to 11 million
Boe. Field-level cash flow accompanying these assets, which
excludes overhead costs, totaled $8 million in the first
quarter.
The divestiture process for the Company’s remaining non-core
assets is ongoing. Devon is marketing its 50 percent interest in
the Access Pipeline in Canada and anticipates an announcement in
the first half of 2016. Efforts to monetize remaining upstream
assets in the U.S. are also progressing. Data rooms for upstream
assets have been open since early March and bids are expected in
the second quarter. Overall, Devon remains on track to complete its
$2 billion to $3 billion of non-core divestitures by year end.
Jefferies LLC acted as the lead financial advisor to Devon on
the transaction. RBC Richardson Barr also acted as a financial
advisor to Devon on the transaction. Vinson & Elkins LLP acted
as legal advisor to Devon.
About Devon Energy
Devon Energy is a leading independent energy company engaged in
finding and producing oil and natural gas. Based in Oklahoma City
and included in the S&P 500, Devon operates in several of the
most prolific oil and natural gas plays in the U.S. and Canada with
an emphasis on a balanced portfolio. The Company is the
second-largest oil producer among North American onshore
independents. For more information, please visit
www.devonenergy.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws. Such statements are
subject to a number of assumptions, risks and uncertainties, many
of which are beyond the control of the Company. These risks
include, but are not limited to: the failure to consummate the
transaction with White Star Petroleum, LLC due to unsatisfied
closing conditions or otherwise; the timing, amount of proceeds and
ultimate success of divesting the Company’s other non-core assets;
and the other risks identified in the Company’s Annual Report on
Form 10-K and its other filings with the Securities and Exchange
Commission. 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 hereof, and the Company does
not undertake any obligation to update the forward-looking
statements as a result of new information, future events or
otherwise.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160420005306/en/
Devon Energy Corp.Investor ContactsHoward Thill,
405-552-3693Scott Coody, 405-552-4735Chris Carr,
405-228-2496Media ContactJohn Porretto, 405-228-7506
Devon Energy (NYSE:DVN)
Historical Stock Chart
From Feb 2024 to Mar 2024
Devon Energy (NYSE:DVN)
Historical Stock Chart
From Mar 2023 to Mar 2024