Devon Energy Aktie

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WKN: 925345 / ISIN: US25179M1036

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20.11.2013 15:13:32

Devon Energy To Buy Eagle Ford Assets From GeoSouthern Energy For $6 Bln In Cash

(RTTNews) - Oil and gas producer Devon Energy Corp. (DVN) announced Wednesday that it agreed to acquire privately-held Texas shale oil driller GeoSouthern Energy's assets in the Eagle Ford oil play for $6 billion in cash.

The acquired assets include current production of 53,000 barrels of oil equivalent or BOE per day and 82,000 net acres with at least 1,200 undrilled locations. The risked recoverable resource is estimated at 400 million barrels of oil equivalent, the majority of which is proved reserves.

The company expects that the transaction will be immediately accretive to virtually every metric, including cash flow per debt-adjusted share.

The firm stated that the acquisition will be funded with a combination of cash on hand and borrowings. It expects to repay the borrowings with free cash flow and proceeds from the monetization of non-core assets.

The transaction is subject to customary purchase price adjustments, terms and conditions, and is expected to close in the first quarter of 2014.

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