Devon Energy Will Make $1 Billion off the Sale of Its Assets
U.S. oil and natural gas producer Devon Energy (DVN) said it would sell assets in Texas for nearly $1 billion and that it was making progress on the sale of other assets as part of its plan to improve its finances through divestitures.
Devon said on Monday it would sell producing assets in east Texas for $525 million and in Anadarko Basin’s Granite Wash area for $310 million.
The company will also sell its royalty interests in the northern Midland Basin in the Texas region for $139 million.
With these sales, Devon’s proceeds from divestitures of natural gas-focused assets would total $1.3 billion, CEO Dave Hager said.
“Proceeds for the entire divestiture program are well on their way to achieving our previously announced range of $2 billion to $3 billion in 2016,” Hager said.
The company said it expected to make an announcement within the next several weeks on the sale of its 50 percent interest in Canada’s Access Pipeline, which carries heavy oil across northeastern Alberta.
Devon also said it was making progress toward selling more Midland basin assets that produced an average of 25,000 barrels of oil equivalent per day in the first quarter.
Jefferies was Devon’s lead financial adviser. RBC Richardson Barr also gave Devon financial advice, while Vinson & Elkins provided legal counsel.