“This is another important step in executing on our plan to divest $2 billion to $3 billion of non-core assets across our portfolio during 2016,” said Dave Hager, president and CEO. “Proceeds will be used to further strengthen our investment-grade balance sheet. Additionally, this timely transaction accelerates Devon’s efforts to focus exclusively on its best-in-class resource plays in onshore North America.”
Net production from the Mississippian assets averaged 12,800 oil-equivalent barrels (Boe) per day in the first quarter of 2016, of which approximately 30 percent was oil. At Dec. 31, 2015, proved reserves associated with these properties amounted to 11 million Boe. Field-level cash flow accompanying these assets, which excludes overhead costs, totaled $8 million in the first quarter.
The divestiture process for the Company’s remaining non-core assets is ongoing. Devon is marketing its 50 percent interest in the Access Pipeline in Canada and anticipates an announcement in the first half of 2016. Efforts to monetize remaining upstream assets in the U.S. are also progressing. Data rooms for upstream assets have been open since early March and bids are expected in the second quarter. Overall, Devon remains on track to complete its $2 billion to $3 billion of non-core divestitures by year-end.
Jefferies LLC acted as the lead financial advisor to Devon on the transaction. RBC Richardson Barr also acted as a financial advisor to Devon on the transaction. Vinson & Elkins LLP acted as legal advisor to Devon Eenergy. The transaction is subject to customary terms and conditions and is expected to close in the second quarter of 2016 with an effective date of Jan. 1, 2016.Tags: Devon Energy