Devon Energy Announces $1.4 Billion Joint Venture
Devon Energy Corporation (NYSE: DVN) today announced it has signed an agreement with Sumitomo Corporation whereby Sumitomo will invest $1.4 billion in exchange for 30 percent of Devon's interest in approximately 650,000 net acres in the Cline Shale and the Midland-Wolfcamp Shale.
“This transaction once again demonstrates the value embedded in our high-quality portfolio,” said John Richels, Devon's president and chief executive officer. “This arrangement will materially enhance Devon's future returns and improve our capital efficiency. It will also further enhance our financial strength. For quite some time we have had a strong working relationship with Sumitomo and look forward to a mutually beneficial joint venture.”
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