OKLAHOMA CITY--(BUSINESS WIRE)--
Devon Energy Corporation (NYSE:DVN) today announced that it has entered
into a definitive agreement to sell the majority of its Canadian
conventional assets to Canadian Natural Resources Limited for C$3.125
billion, or US$2.8 billion using the current exchange rate. The sale
excludes the company’s Horn River, Lloydminster and thermal heavy oil
assets located in Canada. At December 31, 2013, proved reserves
associated with the divestiture totaled approximately 170 million
barrels equivalent. The transaction is subject to customary terms and
conditions and is expected to close early in the second quarter of 2014.
Upon close of the transaction, the company plans to immediately
repatriate the proceeds to the U.S. for use in the repayment of debt
incurred to finance its Eagle Ford acquisition. The company expects net
proceeds of US$2.7 billion after adjusting for currency exchange and
taxes associated with the sale and repatriation of the funds to the U.S.
“This agreement represents a significant step forward in the execution
of our non-core divestiture process,” said John Richels, president and
chief executive officer. “This tax-efficient transaction provides for a
clean exit from our Canadian conventional business at a value of nearly
7 times 2013 EBITDA, a substantial premium compared to Devon’s current
trading multiple. Furthermore, the timely execution of the largest piece
of our non-core divestiture process accelerates the refocus on core
The divestiture process is ongoing for the company’s remaining non-core
properties in the U.S. Devon expects to complete these U.S. divestitures
by year end.
Scotia Waterous acted as lead financial advisor to Devon on the
transaction. BMO Capital Markets also acted as a financial advisor to
Devon on the transaction and has provided a fairness opinion to the
Board of Directors of Devon. Osler, Hoskin & Harcourt LLP acted as legal
advisor to Devon.
Devon Energy Corporation is an Oklahoma City-based independent energy
company engaged in oil and gas exploration and production. Devon is a
leading U.S.-based independent oil and gas producer and is included in
the S&P 500 Index. For additional information, visit www.devonenergy.com.
Devon Energy Corporation
Shea Snyder, 405-552-4782
Chip Minty, 405-228-8647
Source: Devon Energy Corporation