Devon to divest all GOM, international assets, focus on onshore North America

Posted on 24 November 2009

DevonDevon Energy Corp recently unveiled its plan to strategically reposition itself as a high-growth North American onshore company. The company intends to divest all of its Gulf of Mexico and international assets and to direct proceeds to its high-return US and Canadian onshore portfolio and to retire debt.

“Devon’s success has led to an overabundance of opportunities, and this repositioning will allow us to optimize value for our shareholders,” said J. Larry Nichols, chairman and chief executive officer. “We do not believe that the value of our high-quality Gulf and international assets is being adequately reflected in our stock price. By monetizing these assets, we will realize their full value, allowing us to unleash the growth potential that resides within our world-class onshore assets.”

“Following the divestitures, Devon will be uniquely positioned to deliver high organic growth on a sustainable basis, funded entirely with internally generated funds. Furthermore, we expect Devon to emerge with an even stronger balance sheet and one of the lowest overall cost structures in our peer group,” Mr Nichols added.

Devon expects to complete the divestitures throughout 2010 and to have finished the process by year-end. The company believes the divestitures will generate after-tax proceeds of $4.5 billion to $7.5 billion.

Leave a Reply

*

FEATURED MICROSITES


Recent Drilling News

  • 29 October 2014

    New intelligent water management solution based on oxidizer technology

    Nalco Champion has launched the RenewIQ line of oilfield water reuse solutions to help operators reduce freshwater consumption and associated handling costs...

  • 29 October 2014

    Baker Hughes launches all-electric intelligent well system

    Baker Hughes has commercially released its MultiNode all-electric intelligent well system. It allows operators to remotely monitor and control a greater number of production zones...

  • 29 October 2014

    Tercel collaborates with TOTAL to design MicroCORE PDC drill bit

    Tercel Oilfield Products has launched the MicroCORE cutting system at the 2014 SPE Annual Technical Conference and Exhibition in Amsterdam. The MicroCORE cutting...

  • 28 October 2014

    First extension well in pre-salt Libra leads to oil discovery

    The Libra consortium announced that the drilling of the first extension well in the Libra area, known as 3-BRSA-1255-RJS (3-RJS-731), has proven the discovery of high-quality oil...

  • 28 October 2014

    Schlumberger introduces new well integrity service

    Schlumberger has launched its Invizion Evaluation well integrity service. It helps operators to evaluate zonal isolation by using integrated drilling, cementing and well logging data...

  • Read more news