OKLAHOMA CITY (dpa-AFX) - Devon Energy Corp. (DVN) announced its intent to divest approximately $1 billion of upstream assets across its portfolio. The non-core assets identified for monetization include select portions of the Barnett Shale focused primarily around Johnson County and other properties located principally within the company's U.S. resource base.
The company expects to commence the divestiture program in the second quarter of 2017 and complete the sale process over the next 12 to 18 months. The company plans to deploy divestiture proceeds toward its U.S. resource plays and to further strengthen its investment-grade financial position. The company's non-core divestiture plan is also expected to accelerate Devon's transition to higher-margin production.
Dave Hager, CEO, said: 'Given the multi-decade growth platform these franchise assets provide, we are taking this initial step to bring value forward from non-core assets and sharpen our focus on the highest-returning growth inventory in our portfolio. This divestiture program, combined with our excellent liquidity and strong hedge position, supports our capital program and places us firmly on track to achieve our production growth targets in 2017 and 2018.'
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