Devon To Buy GeoSouthern Eagle Ford Assets For $6 Billion

Devon To Buy GeoSouthern Eagle Ford Assets For $6 Billion

Reuters

Nov 20 (Reuters) - Devon Energy Corp struck a deal to buy privately held GeoSouthern Energy's assets in the Eagle Ford shale region of south Texas for $6 billion in cash.

The company said on Wednesday that the assets it is picking up in the deal have current production of 53,000 barrels of oil equivalent (BOE) per day over 82,000 net acres.

Private equity firm The Blackstone Group was an investor in GeoSouthern. It is going to exit its stake through the Devon deal.

The deal to buy most of GeoSouthern's assets is Devon's second large transaction in less than a month as the Oklahoma City-based company seeks to revive investor interest in its shares. The stock was up 3.5 percent at $64.97 in early trading.

Devon has been working for years to transform itself. In 2009, the company started selling off international and offshore assets in order to focus on its North American operations.

In October, the company agreed to combine most of its U.S. pipeline and processing businesses with those owned by Crosstex Energy Inc and Crosstex Energy LP and form a new infrastructure company.

(Reporting by Michael Erman; Editing by Gerald E. McCormick and Nick Zieminski)

Copyright 2016 Thomson Reuters. Click for Restrictions.

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