OKLAHOMA CITY–(BUSINESS WIRE)–Devon Energy Corp. (NYSE: DVN) today announced that it has entered into
a definitive agreement to sell its Canadian business to Canadian Natural
Resources Limited for CAD $3.8 billion, or USD $2.8 billion. This
transaction is subject to customary terms and conditions and is expected
to close by the end of the second quarter of 2019. Proceeds from the
sale of Canada will be used for debt reduction.
“The sale of Canada is an important step in executing Devon’s
transformation to a U.S. oil growth business,” said Dave Hager,
president and CEO. “This transaction creates value for our shareholders
by achieving a clean and timely exit from Canada, while accelerating
efforts to focus exclusively on our high-return U.S. oil portfolio.
“I would like to express my sincere appreciation to all of our Canadian
employees for their hard work and dedication over the past two decades
in building an industry-leading heavy oil business,” said Hager. “With
this change in ownership, it is great to see our talented and innovative
employee base transition to a top-tier company like Canadian Natural
The company’s Canadian asset portfolio consists of heavy oil assets
principally located in the province of Alberta, with net production
averaging 113,000 oil-equivalent barrels in the first quarter of 2019.
At year-end 2018, proved reserves associated with these properties
amounted to approximately 409 million barrels of oil. Field-level cash
flow accompanying these assets, which excludes overhead costs, totaled
$236 million in 2018.
To complete the company’s transformation to a high-return U.S. oil
growth business, Devon continues to advance the divestiture process for
its Barnett Shale gas assets in north Texas. Data rooms for the Barnett
will open in the second quarter of 2019 and the company expects to exit
the assets by the end of 2019.
J.P. Morgan Securities LLC acted as lead financial advisor to Devon on
the Canada transaction. Goldman Sachs also acted as a financial advisor.
This press release contains forward-looking statements within the
meaning of the federal securities laws. Such statements are subject to a
number of assumptions, risks and uncertainties, many of which are beyond
the control of the company. These risks include, but are not limited to:
the delay or failure to consummate the transaction due to unsatisfied
closing conditions or otherwise; the amount of proceeds received due to
purchase price adjustments or otherwise, and the ultimate use of those
proceeds; changes in commodity prices, market conditions or other
circumstances that could negatively impact the company’s ability to
complete the anticipated debt repurchase; and the other risks identified
in the Company’s Annual Report on Form 10-K and its other filings with
the Securities and Exchange Commission (SEC). Investors are cautioned
that any such statements are not guarantees of future performance and
that actual results or developments may differ materially from those
projected in the forward-looking statements. The forward-looking
statements in this press release are made as of the date hereof, and the
company does not undertake any obligation to update the forward-looking
statements as a result of new information, future events or otherwise.
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. with an emphasis on achieving strong
returns and capital-efficient cash-flow growth. For more information,
please visit www.devonenergy.com.
Scott Coody, 405-552-4735
John Porretto, 405-228-7506