Devon Energy has signed an agreement to sell at an
undisclosed price its Texas Chalk and Madison gas gathering systems, which are
located in east Texas. The buyer is LaGrange Acquisition L.P., an affiliate
of Energy Transfer Corporation. The transaction is subject to regulatory
approvals, including Hart-Scott-Rodino filings, and other customary conditions
The assets to be sold include:
Approximately 1,800 miles of pipeline and related compression,
the Madison Gas Plant in Madison County, Texas, with processing
capacity of 80 million cubic feet of gas per day, and
four treating plants, a fractionator and a condensate stabilization
facility, which are in the vicinity of College Station, Texas.
Devon is not amending its forecast of its company-wide 2004 midstream
operating margin as a result of this sale.
"This transaction is the latest in a series of dispositions of acquired
assets that we considered to be non-core," said Darryl G. Smette, senior vice
president of marketing and midstream. "Devon continually looks for
opportunities to streamline our operations by growing in our focus areas and
shedding non-core assets."