emailEmail    |    bookmarkBookmark

Devon Continues Divestiture Program; Sells Johnson County/Barnett Shale Asset

Announced Date
March 07,2018
Deal Value $
553,000,000
Location Count
1,500
Transaction Type
Property
Buyer
Not Disclosed
Seller
Devon Energy Corp
Source Documents:
   Source Link
Location
Region
Mid-Continent - North Texas

Country
United States

State
Texas

County
Johnson

Play
Barnett Shale


Production
Production
200 Mmcfe/d


$/Location
368,667

Transaction Details: 

[Summary: Devon Energy has agreed to sell the southern portion of its Barnett Shale assets for $553 million to an undisclosed buyer.  The company continues to market and sell non-core assets as it focuses its efforts on Eagle Ford, STACK, Delaware and Powder River Basin.

Asset Details:

  • Location: Primarily in Johnson County, Texas
  • Net Production: 200 Mmcfe/d

Remaining Position

The company's remaining position in the Barnett Shale primarily resides in Denton, Wise and Tarrant counties, with current production of 680 million cubic feet of gas-equivalent per day. This position contains an inventory of approximately 1,500 potential locations, consisting of undrilled inventory and horizontal refrac opportunities.

J.P. Morgan Securities LLC acted as the financial advisor to Devon on the transaction. Vinson & Elkins LLP acted as legal advisor to Devon.]

 

 

 

 

 

 

ORIGINAL RELEASE:

Devon Energy Corp. (NYSE:DVN) announced today it has entered into a definitive agreement to sell the southern portion of its Barnett Shale position for $553 million. The transaction is subject to customary terms and conditions and is expected to close in the second quarter of 2018.

"Combined with other recent asset sales, divestiture proceeds associated with our 2020 Vision have now reached $1.0 billion," said Dave Hager, president and CEO. "In conjunction with this asset sale, and consistent with our strategic plan, we announced today in a separate release that our board has authorized a $1.0 billion share-repurchase program and a 33 percent increase in Devon's quarterly cash dividend. We are very confident about Devon's future and, as market conditions permit, we will continue to pursue opportunities to further increase cash returns to our shareholders."

Net production from the southern Barnett divestiture assets, which reside primarily in Johnson County, are currently averaging 200 million cubic feet of gas-equivalent per day. Field-level cash flow accompanying these assets, which excludes overhead costs, is expected to be approximately $100 million in 2018.

The company's remaining position in the Barnett Shale primarily resides in Denton, Wise and Tarrant counties, with current production of 680 million cubic feet of gas-equivalent per day. This position contains an inventory of approximately 1,500 potential locations, consisting of undrilled inventory and horizontal refrac opportunities.

J.P. Morgan Securities LLC acted as the financial advisor to Devon on the transaction. Vinson & Elkins LLP acted as legal advisor to Devon.

About Devon Energy

Devon Energy is a leading independent energy company engaged in finding and producing oil and natural gas. Based in Oklahoma City and included in the S&P 500, Devon operates in several of the most prolific oil and natural gas plays in the U.S. and Canada with an emphasis on achieving strong returns and capital-efficient cash flow growth. For more information, please visit www.devonenergy.com.

Mid-Continent - North Texas Deal Activity In Last 12 Months



Related Mid-Continent - North Texas Region's Deals



Announced DateBuyerSellerDeal Value($mm)LocationCategory
Nov-03-2017 Not Disclosed  - Click here Texas  E&P
Sep-07-2017 White Knight Production LLC  - Click here Texas  E&P
Aug-01-2017 Not Disclosed  - Click here Texas  E&P
Jun-29-2017 Miller Thomson & Partners LLC  - Click here Texas  E&P
Feb-02-2017 Not Disclosed  - Click here Texas  E&P

Price History



Date Deal Headline Price$/acre
Sep-26-2016 Rice Acquires Rival Vantage Energy for $2.7 Billion; Marcellus, Utica, Barnett Assets $2700.00  Million 22,020
Sep-09-2016 Total USA Acquires Remaining Barnett Shale Asset From Chesapeake $420.00  Million
Sep-06-2013 Carrizo Sells Remainder of Barnett Shale Assets $218.00  Million 22,945

Related Devon Energy Corp Deals



Announced DateBuyerSellerDeal Value($mm)LocationCategory
Jul-31-2017 Penn Virginia Corp  - Click here Texas  E&P
Jun-15-2016 FDL Operating LLC  - Click here Texas  E&P
Jun-15-2016 Pioneer Natural Resources Co.  - Click here Texas  E&P
Jun-06-2016 Not Disclosed  - Click here Texas  E&P
Jun-06-2016 Sheridan Production Partners  - Click here Texas  E&P