Devon Energy Sharpens Focus on Core Assets
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Agrees to acquire premier oil-focused leasehold in STACK and
Powder River Basin plays -
Creates industry-leading positions in best emerging oil development
plays in
North America - Adds thousands of high-quality drilling locations with substantial resource upside
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Commences divestiture program with targeted proceeds of
$2 to $3 billion - Proceeds from asset sales to bolster financial position
“Devon has made several bold moves over the past few years transforming
the company into a leading North American onshore producer with a
portfolio that provides an advantaged platform to generate long-term
value growth for shareholders,” said
“The success we have had growing our asset base has generated an abundance of opportunities within our portfolio,” said Hager. “In an effort to focus exclusively on our very best resource plays, strengthen our already solid financial position and drive investor value, we are also announcing our intent to divest non-core assets. This will sharpen our focus on what we believe to be the best oil and gas assets in North America.”
The EnLink Advantage Secures STACK Acquisition
In a related transaction announced separately today, EnLink Midstream
agreed to acquire Tall Oak Midstream, a portfolio company for EnCap
Flatrock Midstream, for
“We are excited about the opportunity presented with the Felix and Tall Oak acquisitions,” said Hager. “The synergistic relationship of these assets and our ownership in EnLink allowed the simultaneous acquisition of Felix’s upstream business by Devon with EnLink acquiring the associated midstream infrastructure of Tall Oak. This collaboration was a competitive advantage in securing these top-tier assets and a testament to the strength of our partnership which is well positioned to benefit from the significant upside the resource-rich STACK play offers.”
Best-In-Class Position in STACK Play
The 80,000 net surface acres being acquired in the STACK play are
located in
The acquired properties include production of approximately 9,000
oil-equivalent barrels (Boe) per day and estimated risked resource of
approximately 400 million Boe. Based on an estimated value of the
existing daily production in excess of
“This acquisition has captured a significant position in the most
economic portion of the STACK oil window, which is emerging as one of
the top resource plays in North America,” said
Upon closing of the Felix assets in early 2016, Devon’s daily production
in the STACK play, which includes the Cana-
Achieving Scale in the
The acquired
“This opportunistic transaction adds scale and scope to our
After deducting the value of current production at
Upon closing the transaction, Devon’s daily production from its Rockies
business unit will increase to more than 30,000 Boe per day, and its
Funding Details and Non-Core Asset Sale Expectations
The acquisitions will initially be funded with a combination of equity
and cash. Devon will issue shares to sellers valued at approximately
The Company is in the process of marketing its Access Pipeline in
Conference Call and Webcast Information
Devon will discuss these transactions on a conference call and webcast
at
Advisor
The financial advisor to Devon for the Felix transaction was
Forward-Looking Statements
This press release includes "forward-looking statements" as defined
by the
The
About
View source version on businesswire.com: http://www.businesswire.com/news/home/20151207005488/en/
Source:
Devon Energy Corp.
Investor Relations:
Howard Thill,
405-552-3693
Scott Coody, 405-552-4735
Shea Snyder,
405-552-4782
Media Relations:
John Porretto, 405-228-7506