Devon Energy to sell Canadian conventional assets for $2.8 billion

Devon Energy Corp., Oklahoma City, has agreed to sell the majority of its Canadian conventional assets to Canadian Natural Resources Ltd. for $2.8 billion. Proved reserves associated with the divesture are about 170 million boe, said the company.

Upon close of the transaction, Devon said it would use the proceeds to repay debt incurred to finance its 2013 Eagle Ford acquisition (OGJ Online, Nov. 20, 2013). The company expects $2.7 billion to be repatriated to the US after taxes and exchange rate adjustments.

“This agreement represents a significant step forward in the execution of our non-core divestiture process,” said John Richels, president and chief executive officer, Devon Energy. The company’s Canadian assets were the largest piece of that process and now Devon is free to focus on core assets, he added.

The company will retain its Canadian holdings in Horn River and Lloydminster as well as its heavy oil assets.