Devon Energy To Sell Non-Core Assets For $200 Million

Devon Energy Corp

disclosed that it struck a definitive deal to divest its non-core Mississippian assets to White Star Petroleum, LLC for $200 million. The company said that the transaction is expected to close in the June quarter with an effective date of January 1, subject to customary conditions and closing. The company's President and CEO, Dave Hager, said that "This is another important step in executing on our plan to divest $2 billion to $3 billion of non-core assets across our portfolio during 2016. Proceeds will be used to further strengthen our investment-grade balance sheet. Additionally, this timely transaction accelerates Devon's efforts to focus exclusively on its best-in-class resource plays in onshore North America." Devon Energy said that net production from the Mississippian assets averaged 12,800 oil-equivalent barrels (Boe) per day in the first quarter of the current year and approximately 30% was oil. At the end of the last year, proved reserves associated with these properties amounted to 11 million Boe. The stock traded down by 0.74% on Wednesday.