Devon Energy To Sell Addl. $1 Bln Non-core Upstream Assets - Quick Facts

(RTTNews) - Devon Energy Corp. (DVN) announced Monday that it has agreed for additional $1 billion of upstream asset sales.

The company entered into definitive agreements with undisclosed parties to monetize nearly $1 billion of non-core upstream assets in east Texas, the Anadarko Basin and an overriding royalty interest in the northern Midland Basin.

The largest transaction is an agreement to divest upstream assets in east Texas for $525 million. Net production from these properties averaged 22,000 oil-equivalent barrels or Boe per day in the first quarter of 2016.

The Company also agreed to sell its non-core position in the Anadarko Basin's Granite Wash area for $310 million. In the northern Midland Basin, Devon entered into an agreement to sell its overriding royalty interest across 11,000 net acres for $139 million.

These transactions are subject to customary terms and conditions and are expected to close in the third quarter of 2016.

The Company expects to incur minimal taxes associated with these transactions.

As announced earlier, proceeds from these transactions will be utilized to further strengthen its investment-grade financial position.

The Company continues to progress toward monetizing other non-core upstream assets in the Midland Basin. Production associated with these assets averaged approximately 25,000 Boe per day in the first quarter and includes the aforementioned 15,000 net undeveloped acres in Martin County.

Additionally, Devon is in advanced negotiations to sell its 50 percent interest in the Access Pipeline in Canada. An announcement is anticipated within the next several weeks.