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9 Pages

Devon sells east Texas and Granite Wash assets plus Midland Basin royalty interests for US$974 million

Devon sells east Texas and Granite Wash assets plus Midland Basin royalty interests for US$974 million

Report summary

Devon Energy announced three independent divestitures aimed at sharpening the company's focus in higher quality assets resource plays. Devon has divested assets in East Texas, mainly in the Haynesville and Cotton Valley plays, for US$525 million with 22,000 boed net flowing production, along with Granite Wash assets in the Anadarko Basin for US$310 million with 14,000 boed net flowing production. In addition, the company sold an overriding royalty interest across 11,000 net acres in the Permian's northern Midland Basin for US$139 million. Selling these assets helps Devon simplify its portfolio, and reduce its leverage after spending US$2.5 billion (46% cash) on tight-oil acquisitions in December 2015. After selling its remaining marketed assets (i.e., Midland Basin properties and its 50% interest in the Access Pipeline in Canada), we believe Devon will raise an amount closer to the higher end of its targeted range of US$2-3 billion (including US$300 million raised already this year).

What's included?

This report includes 1 file(s)

  • Devon sells east Texas and Granite Wash assets plus Midland Basin royalty interests for US$974 million PDF - 5.56 MB 9 Pages, 11 Tables, 2 Figures


The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
  • Upstream assets
  • Deal analysis
  • Upsides and risks
  • Strategic rationale
  • Oil & gas pricing and assumptions

In this report there are 13 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
    • Executive summary: Table 2
  • Transaction details
  • Upstream assets
    • Devon's Cotton Valley wells and select neighboring operators' positions
    • Devon's Granite Wash position against select neighboring operators' wells
    • Upstream assets: Table 1
  • Deal analysis
    • Deal analysis: Table 1
    • Deal analysis: Table 2
    • Deal analysis: Table 3
    • Deal analysis: Table 4
    • Deal analysis: Table 5
    • Deal analysis: Table 6
    • Deal analysis: Table 7
  • Upsides and risks
  • Strategic rationale
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
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