Devon Energy Sells Pipeline Stake

Devon Energy Corp. said Thursday that it will sell its 50% ownership stake in Access Pipeline to Wolf Midstream Inc. for C$1.4 billion (US$1.1 billion).

Wolf is a portfolio company of the Canada Pension Plan Investment Board.

Devon Chief Executive Dave Hager said the deal ended the company's divestiture program where it was seeking to sell US$2 billion to US$3 billion in assets. The company has now sold US$3.2 billion.

The deal is expected to close in the third quarter of 2016 and is subject to customary closing conditions.

The agreement also includes the potential for a C$150 million payment based on the development of a new thermal-oil project on Devon's Pike lease in Alberta, Canada. Devon's thermal-oil acreage is dedicated to Access Pipeline for an initial length of 25 years.

Write to Austen Hufford at austen.hufford@wsj.com

(END) Dow Jones Newswires

July 14, 2016 07:15 ET (11:15 GMT)

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