Devon Energy Monetizes Non-Core Midland Assets for $858 Million; Increasing 2016 Capital Program $200 Million; Raising 2016 Production OutlookDownload
“We are pleased to announce these highly accretive non-core
divestitures, concluding our E&P sales process ahead of schedule,” said
“At least two-thirds of our asset sales proceeds are expected to be used
to further strengthen our investment-grade balance sheet, while
one-third are targeted for reinvestment in our best-in-class U.S.
resource plays,” said Hager. “With the success of our E&P asset sales,
we are now in the planning stages to increase our upstream activity by
Increasing 2016 Capital Program; Raising Full-Year Production Guidance
The Company now expects its full-year 2016 upstream capital program to
The Company is also raising its full-year 2016 production guidance from core assets to a range of 540,000 to 560,000 Boe per day. This represents an increase of 7,000 Boe per day from previous guidance. More detailed information for Devon’s 2016 production and capital outlook will be provided within second-quarter 2016 earnings disclosures.
Midland Divestitures Transaction Details
In the northern
In a separate transaction, Devon entered into an agreement to sell its
assets in the southern
The Company expects to incur minimal taxes associated with these divestitures. These transactions are subject to customary terms and conditions and are expected to close in the third quarter of 2016.
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 transactions 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
Devon Energy Corp.
Howard Thill, 405-552-3693
Scott Coody, 405-552-4735
Chris Carr, 405-228-2496
John Porretto, 405-228-7506