OKLAHOMA CITY--(BUSINESS WIRE)--Feb. 28, 2014--
Devon Energy Corporation (NYSE:DVN) today completed its previously
announced acquisition of Eagle Ford assets from GeoSouthern Energy.
Devon has acquired 82,000 net acres located in DeWitt and Lavaca
counties in Texas. This world-class light-oil position is delivering
outstanding well results offering some of the highest rate-of-return
drilling opportunities in North America.
“Our Eagle Ford acquisition is one of several bold steps we have
recently taken to upgrade our portfolio and improve the growth
trajectory and profitability of our business,” said
John Richels
,
president and chief executive officer. “We were able to acquire these
premier Eagle Ford assets at a price well below our current EBITDA
multiple, resulting in immediate accretion to Devon shareholders on
virtually every metric, including cash flow per debt-adjusted share.”
Devon plans to invest approximately $1.1 billion in the Eagle Ford this
year and will drill more than 200 wells. For its 10 months of ownership
in the play this year, the company’s net production is expected to
average between 70,000 and 80,000 barrels of oil equivalent per day.
With the majority of Devon’s Eagle Ford acreage derisked, this
opportunity provides low-risk, repeatable oil growth for years to come.
Devon Energy Corporation is an Oklahoma City-based independent energy
company engaged in oil and gas exploration and production. Devon is a
leading U.S.-based independent oil and gas producer and is included in
the S&P 500 Index. For additional information, visit www.devonenergy.com.
This press release includes "forward-looking statements" as defined
by the Securities and Exchange Commission (SEC). Such statements are
those concerning strategic plans, expectations and objectives for future
operations. All statements, other than statements of historical facts,
included in this press release that address activities, events or
developments that the company expects, believes or anticipates will or
may occur in the future are forward-looking statements. Such statements
are subject to a number of assumptions, risks and uncertainties, many of
which are beyond the control of the company. Statements regarding future
drilling and production are subject to all of the risks and
uncertainties normally incident to the exploration for and development
and production of oil and gas. These risks include, but are not limited
to, the volatility of oil, natural gas and NGL prices; uncertainties
inherent in estimating oil, natural gas and NGL reserves; the extent to
which we are successful in acquiring and discovering additional
reserves; unforeseen changes in the rate of production from our oil and
gas properties; uncertainties in future exploration and drilling
results; uncertainties inherent in estimating the cost of drilling and
completing wells; drilling risks; competition for leases, materials,
people and capital; midstream capacity constraints and potential
interruptions in production; risk related to our hedging activities;
environmental risks; political changes; changes in laws or regulations;
our limited control over third parties who operate our oil and gas
properties; our ability to successfully complete mergers, acquisitions
and divestitures; and other risks identified in our Form 10-K and our
other filings with the SEC. 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 of this press release, even if
subsequently made available by Devon on its website or otherwise. Devon
does not undertake any obligation to update the forward-looking
statements as a result of new information, future events or otherwise.
Source: Devon Energy Corporation
Devon Energy Corporation
Investor Contacts
Scott Coody,
405-552-4735
or
Shea Snyder, 405-552-4782
or
Media
Contact
Chip Minty, 405-228-8647