Corporate News Blog - Devon Energy Receives $340 Million under its $1 Billion Divestiture Plan; Sells its Lavaca County-Eagle Ford based Assets
Research Desk Line-up: ConocoPhillips Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 2, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Devon Energy Corp. (NYSE: DVN), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=DVN. The Company announced on July 31, 2017, that it has entered into a definitive agreement to monetize its Lavaca County assets in the Eagle Ford play. Combined with other minor asset sales across its US operations, the proceeds from the Company's recently announced divestiture program has now reached $340 million. For immediate access to our complimentary reports, including today's coverage, register for free now at:
http://protraderdaily.com/register/
Discover more of our free reports coverage from other companies within the Independent Oil & Gas industry. Pro-TD has currently selected ConocoPhillips (NYSE: COP) for due-diligence and potential coverage as the Company reported on July 27, 2017, its financial results for Q2 2017. Tune in to our site to register for a free membership, and be among the early birds that get our report on ConocoPhillips when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on DVN; also brushing on COP. Go directly to your stock of interest and access today's free coverage at:
http://protraderdaily.com/optin/?symbol=DVN
http://protraderdaily.com/optin/?symbol=COP
The Announcement
Devon views this divestment announcement as an important step in executing its $1 billion divestiture program over 2018. In aggregate, net production from the divested properties averaged about 4,000 oil eq. barrels, per day. The final-level cash flow, accompanying these assets, is expected to be $30 million annually, excluding overhead costs. Proved reserves associated with these properties amounted to less than 10 million Boe at December 31, 2016. The Company expects to incur minimal taxes associated with these transactions.
The $1 Billion Divestiture Plan
Devon recently announced its intent to divest about $1 billion of upstream assets across its portfolio. Devon commenced the divestiture program in Q2 2017, as planned, and expects to complete the sale process, in the next 12 to 18 months. Devon also plans to deploy divestiture proceeds towards its US resource plays and to further strengthen its investment-grade financial position. The Company's non-core divestiture plan is expected to accelerate the Company's transition to higher-margin production.
The Company plans to leverage growth opportunities from the STACK and the Delaware Basin, primarily, where the Company has exposure to more than 30,000 potential drilling locations, of which roughly one-third have been de risked. TheCompany expects these strategic actions to deliver certainty for its future capital programs and uniquely position it to maintain a strong operational momentum through the end of 2020.
Other Divestitures
Devon identified the non-core assets for monetization including select portions of the Barnett Shale focused primarily around Johnson County and other properties located principally within the Company's US resource base. The Company plans to monetize its Johnson County properties in the Barnett Shale. The Johnson County assets represent about 20% of the Company's Barnett shale net production and cash flow. Devon announced that it is actively marketing these assets and expects to complete its non-core divestiture program over the next year. Devon is currently the second-largest oil producer among North American onshore independents.
Company Matters
Devon's operations primarily include upstream operations, where it is engaged in the exploration, development and production of oil, natural gas, and natural gas liquids. The Company's operations are concentrated in the North American onshore areas that extend from Western Canada to the Gulf Coast Region in the United States.
This premier asset portfolio delivers the Company stable production and a platform for future growth. In the US, the Company's operations are focused on four core oil-producing areas, namely: the STACK, Delaware Basin, Eagle Ford, and Rockies. The Company's oil assets in these top-tier resource plays offer a deep inventory of opportunities, where its liquids-rich gas asset in the Barnett Shale offers natural gas optionality.
Last Close Stock Review
On Tuesday, August 01, 2017, the stock closed the trading session at $32.98, slightly falling 0.99% from its previous closing price of $33.31. A total volume of 4.61 million shares have exchanged hands. Devon Energy's stock price advanced 3.16% in the last one month. The stock is trading at a PE ratio of 33.08 and has a dividend yield of 0.73%. The stock currently has a market cap of $17.47 billion.
Pro-Trader Daily:
Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charter holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: contact@protraderdaily.com
Phone number: (917) 341.4653
Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Pro-Trader Daily
