OKLAHOMA CITY--(BUSINESS WIRE)--
Devon Energy Corp. (NYSE: DVN) announced today it has entered into a
definitive agreement to monetize its Lavaca County assets in the Eagle
Ford play. Combined with other minor asset sales completed across its
U.S. operations, proceeds from the company’s recently announced $1
billion divestiture program have now reached $340 million. The Lavaca
County transaction is subject to customary terms and conditions and is
expected to close by the end of 2017.
“These highly-accretive asset sales are an important step in executing
on our $1 billion divestiture program over the next year,” said Dave
Hager, president and CEO. “The divestiture proceeds will further
strengthen our investment-grade financial position and provide us
additional flexibility to build operational momentum across our top-tier
U.S. resource plays.”
In aggregate, net production from the divested properties averaged
approximately 4,000 oil-equivalent barrels (Boe) per day (60 percent
oil). Field-level cash flow accompanying these assets, which excludes
overhead costs, is projected to approximate $30 million annually. Proved
reserves associated with these properties amounted to less than 10
million Boe at Dec. 31, 2016. The company expects to incur minimal taxes
associated with these transactions.
Efforts to monetize Devon’s Johnson County properties in the Barnett
Shale are progressing. The Johnson County assets represent approximately
20 percent of the company’s Barnett Shale net production and cash flow.
Devon is actively marketing these assets and expects to complete its
non-core divestiture program over the next year.
RBC Richardson Barr acted as a financial advisor to Devon on the Lavaca
County transaction.
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 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.
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Source: Devon Energy Corporation