Devon Energy Announces $553 Million Sale of Johnson County Assets
March 07 2018 - 4:12PM
Business Wire
Devon Energy Corp. (NYSE: DVN) announced today it has entered
into a definitive agreement to sell the southern portion of its
Barnett Shale position for $553 million. The transaction is subject
to customary terms and conditions and is expected to close in the
second quarter of 2018.
“Combined with other recent asset sales, divestiture proceeds
associated with our 2020 Vision have now reached $1.0 billion,”
said Dave Hager, president and CEO. “In conjunction with this asset
sale, and consistent with our strategic plan, we announced today in
a separate release that our board has authorized a $1.0 billion
share-repurchase program and a 33 percent increase in Devon’s
quarterly cash dividend. We are very confident about Devon’s future
and, as market conditions permit, we will continue to pursue
opportunities to further increase cash returns to our
shareholders.”
Net production from the southern Barnett divestiture assets,
which reside primarily in Johnson County, are currently averaging
200 million cubic feet of gas-equivalent per day. Field-level cash
flow accompanying these assets, which excludes overhead costs, is
expected to be approximately $100 million in 2018.
The company’s remaining position in the Barnett Shale primarily
resides in Denton, Wise and Tarrant counties, with current
production of 680 million cubic feet of gas-equivalent per day.
This position contains an inventory of approximately 1,500
potential locations, consisting of undrilled inventory and
horizontal refrac opportunities.
J.P. Morgan Securities LLC acted as the 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 achieving strong returns and capital-efficient cash
flow growth. 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 delay or failure to consummate
the transaction due to unsatisfied closing conditions or otherwise;
the amount of proceeds received due to purchase price adjustments
and other factors, and the ultimate use of those proceeds; 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
(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 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. The SEC permits oil and gas companies, in their filings
with the SEC, to disclose only proved, probable and possible
reserves that meet the SEC's definitions for such terms, and price
and cost sensitivities for such reserves, and prohibits disclosure
of resources that do not constitute such reserves. This press
release contains certain terms, such as undrilled inventory and
locations and other similar terms. These estimates are by their
nature more speculative than estimates of proved, probable and
possible reserves and accordingly are subject to substantially
greater risk of being actually realized. Investors are urged to
consider closely the disclosure in our Annual Report on Form 10-K
and other SEC filings.
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version on businesswire.com: http://www.businesswire.com/news/home/20180307006335/en/
Devon Energy CorporationInvestor ContactsScott Coody,
405-552-4735Chris Carr, 405-228-2496Media ContactJohn
Porretto, 405-228-7506
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