Devon Energy Announces Sale of Non-Core Mississippian Assets
OKLAHOMA CITY, Apr. 20 /BusinessWire/ --
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: https://www.businesswire.com/news/home/20160420005306/en/ CONTACT:
Devon Energy Corp. Investor Contacts Howard Thill,
405-552-3693 Scott Coody, 405-552-4735 Chris Carr, 405-228-2496 Media
Contact John Porretto, 405-228-7506
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