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Devon to Score $1.0 Billion from New Asset Sales; More Planned

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   |    Monday,June 06,2016

Devon Energy has 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. 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.

Dave Hager, president and CEO, said: "Combined with other recent asset sales, we have now announced $1.3 billion of gas-focused upstream divestitures. As we've said previously, proceeds from these tax-efficient transactions will be utilized to further strengthen our investment-grade financial position. With oil prices having moved in our favor throughout the sales process, we are encouraged by the interest and progress in marketing our remaining non-core oil assets in the Midland Basin and Access Pipeline in Canada. Proceeds for the entire divestiture program are well on their way to achieving our previously announced range of $2 billion to $3 billion in 2016."

June 6, 2016 Deals:

East Texas Assets - Haynesville / Bossier - $525 Million - Click here for more information

North Texas Assets - Granite Wash - $310 Million - Click here for more information

Midland Basin Assets - Royalty Interests - $139 Million - Click here for more information

Remaining Divestiture Assets

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.


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