Devon Energy’s successful non-core assets divestiture program
In July 2016, Devon Energy concluded its 2016 non-core assets divestiture program. It sold its non-core upstream assets for proceeds totaling $3.2 billion, surpassing the top end of its $2 billion–$3 billion guidance range.
Devon Energy’s divested assets include:
- Its Mississippian assets sold for ~$200 million in April 2016. These assets were producing ~12.8 Mboe per day.
- Its East Texas upstream assets sold for ~$525 million in June 2016. These assets were producing ~22 Mboe per day.
- Its Anadarko Basin’s Granite Wash area assets sold for $310 million in June 2016. These assets were producing ~14 Mboe per day.
- Its Northern Midland Basin royalty interest sold its overriding royalty interest across 11,000 net acres for ~$139 million. Production from this overriding royalty interest was ~1 Mboe per day.
- Its Midland Basin assets sold for ~$858 million in June 2016. These assets were producing ~23 Mboe per day.
- The company sold its 50% ownership interest in Access Pipeline for $1.1 billion in July 2016.
Devon Energy plans to use at least two-thirds of these asset sales proceeds to reduce debt and one-third to accelerate investment in its best-in-class US resource plays, led by the STACK and Delaware Basin.