Devon Energy announces $340M of noncore asset sales
Devon Energy said it has entered into a definitive agreement to monetize its Lavaca County assets in the Eagle Ford play. Combined with other minor asset sales completed across its U.S. operations, proceeds from the company's recently announced $1B divestiture program have now reached $340M. The Lavaca County transaction is subject to customary terms and conditions and is expected to close by the end of 2017. In aggregate, net production from the divested properties averaged approximately 4,000 oil-equivalent barrels per day. Field-level cash flow accompanying these assets, which excludes overhead costs, is projected to approximate $30M annually. Proved reserves associated with these properties amounted to less than 10 million Boe at Dec. 31, 2016. The company expects to incur minimal taxes associated with these transactions. Efforts to monetize Devon's Johnson County properties in the Barnett Shale are progressing. The Johnson County assets represent approximately 20% of the company's Barnett Shale net production and cash flow. Devon is actively marketing these assets and expects to complete its non-core divestiture program over the next year.