Devon Energy To Sell Its Non-core U.S. Oil & Gas Assets To Linn For $2.3 Bln

(RTTNews) - Devon Energy Corp. (DVN) announced that it has entered into a definitive agreement to sell all of its non-core U.S. oil and gas properties to Linn Energy (LINE, LNCO) for $2.3 billion, or approximately $1.8 billion after tax. The agreement covers Devon's remaining assets targeted for divestiture and includes properties in the Rockies, onshore Gulf Coast, and Mid-Continent regions of the U.S.

Devon's production from these non-core U.S. assets is currently 275 million cubic feet of gas equivalent per day, of which approximately 80 percent is natural gas.

"With the sale of our remaining non-core assets, the portfolio transformation that we announced late last year is now complete. Devon is now concentrated in some of the most attractive North America resource plays, with liquids expected to approach 60 percent of our production by year-end and multi-year oil production growth projected to be in excess of 20 percent. Upon completion of this transaction we will have reduced our net debt by more than $4 billion this year," said John Richels, president and CEO of Devon Energy.

LINN Energy said the acquisition of Devon assets is intended to be financed ultimately through the sale of its Granite Wash assets and other non-producing acreage in its portfolio. LINN plans to sell its position in the Granite Wash and Cleveland plays located in the Texas Panhandle and western Oklahoma. Potential excess proceeds from the sale of assets, if any, will be used initially to reduce debt and for general corporate purposes, LINN said.