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Oil & Gas

Devon Energy making quick progress on asset sales

Devon announced its divestment programme in early May, and the Lavaca deal is expected to close by the end of this year.

Devon Energy Corp (NYSE:DVN) on Monday revealed it is already a third of the way through its planned US$1bn asset sales programme, as it sold non-core US shale assets.

The divested assets, located in Lavaca county, account for some 4,000 barrels oil equivalent production per day (with some 60% comprising of oil), but, had less than 10mln barrels of proved reserves.

Proceeds from asset sales now amount to US$340mln, Devon said in a statement.

“These highly-accretive asset sales are an important step in executing on our $1 billion divestiture program over the next year,” said Dave Hager, Devon chief executive.

“The divestiture proceeds will further strengthen our investment-grade financial position and provide us additional flexibility to build operational momentum across our top-tier U.S. resource plays.”

Devon announced its divestment programme in early May, and the Lavaca deal is expected to close by the end of this year.

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