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

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20 June 2016

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

Report summary

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.

Table of contents

  • Executive summary
  • Transaction details
  • Deal analysis
  • Strategic rationale
  • Oil & gas pricing and assumptions

Tables and charts

This report includes 7 images and tables including:

  • Devon's northern Midland position against select Pioneer's wells
  • Deal analysis: Table 1
  • Deal analysis: Table 2
  • Deal analysis: Table 3
  • Deal analysis: Table 4
  • Oil & gas pricing and assumptions: Table 1
  • Oil & gas pricing and assumptions: Table 2

What's included

This report contains:

  • Document

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

    PDF 1.09 MB

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