Devon reaches E&P disposal target with two Midland Basin divestitures totalling US$858 million

Less than ten days after announcing nearly US$1 billion in non-core divestitures, Devon Energy announced definitive agreements to sell its remaining non-core assets in the Midland Basin for US$858 million. The company's northern Midland Basin properties were sold to Pioneer Natural Resources for US$435 million, and the southern Midland Basin properties were sold to an undisclosed buyer for US$423 million. Together with the company's earlier sales, total announced non-core divestments amount to US$2.1 billion. The company's divestment initiative is intended to simplify its portfolio and reduce leverage, after spending US$2.5 billion (46% cash) on tight-oil acquisitions in December 2015. Devon plans to utilise two-thirds of the asset sales' proceeds to strengthen its balance sheet, and the remaining one-third for reinvestment in its primary Lower 48 resource plays - namely the Delaware Basin and STACK play in Oklahoma.