Devon Energy Announces Acquisition of Eagle Ford Assets from GeoSouthern Energy
Download- Acquired at 2.5 times expected 2015 EBITDA
- Immediately accretive to cash flow per debt-adjusted share
- Delivering a multi-year compound annual oil growth rate of 25 percent per year
- Includes current production of 53,000 barrels of oil equivalent per day
- Risked resource of 400 million oil equivalent barrels
“With this transaction, we have secured a premier acreage position in
the very best part of the world-class Eagle Ford oil play. This
acquisition enhances our already strong North American portfolio by
adding another low-risk, light oil asset that provides outstanding well
economics and self-funded growth,” said
The acquired Eagle Ford acreage is located in
“We have considered many acquisition opportunities over the past few
years, but none have met our stringent criteria,” said Richels. “Our
patience and disciplined approach have culminated in this outstanding
opportunity, allowing us to secure these world-class light oil assets at
2.5 times expected 2015 EBITDA. Companies with concentrated asset
positions in the best oil plays in the country, such as the Eagle Ford,
Bakken, and
The majority of the acquired acreage is located in
“The addition of these assets leverages our core competencies,” said
The acquisition will be funded with a combination of cash on hand and borrowings. Devon expects to repay the borrowings with free cash flow and proceeds from the monetization of non-core assets. The transaction is subject to customary purchase price adjustments, terms and conditions, and is expected to close in the first quarter of 2014.
GeoSouthern, one of the first companies to successfully execute in the
Eagle Ford oil play, will continue to operate all of its other assets in
the
Advisors
The legal advisor to Devon for this transaction is
Conference Call and Webcast Today
Devon will discuss this transaction today on a conference call and
webcast at
This press release includes "forward-looking statements" as defined
by the
The
GeoSouthern is a privately held, independent exploration and
production company based in
Blackstone is one of the largest alternative asset managers in the
world, with
Source:
Devon Energy Corporation
Investors:
Scott Coody, 405-552-4735
or
Shea
Snyder, 405-552-4782
or
Media:
Chip Minty, 405-228-8647
or
GeoSouthern
Media:
Tom
Johnson, 212-371-5999
or
Glen Orr, 713-205-7770