Devon Energy To Buy Assets From Felix Energy For $1.9B
Dec 7 (Reuters) – Oil producer Devon Energy Corp said it will buy some assets in the Anadarko Basin from smaller peer Felix Energy LLC for $1.9 billion, the latest deal in the U.S. oil patch, which has been hit by a supply glut.
As part of the deal with Felix, Devon will acquire 80,000 net surface acres, with up to 10 prospective zones, in the Anadarko Basin which is spread over Oklahoma and Texas.
Separately, Devon agreed to acquire 253,000 net acres in the Powder River Basin for $600 million on Monday.
The Powder River Basin assets are located to the south of Devon's existing position in Wyoming and includes production of 7,000 barrels of oil equivalent per day, with about 85 percent oil, the company said.
Devon's pipeline unit EnLink Midstream also agreed to acquire peer Tall Oak Midstream for $1.55 billion.
Reuters reported last week that Devon is in discussions to buy peer Felix Energy for around $2 billion, including debt, citing sources familiar with the matter.
The deals will be funded with about $1.35 billion of Devon equity issued to sellers and about $1.15 billion of cash on hand and borrowings.
(Reporting by Sneha Banerjee in Bengaluru; Editing by Shounak Dasgupta)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Permian Auction Doubles 2008 Record with near Billion-Dollar Sale (Sep 07)
- Shale Companies Sink On Investor Disappointment, Hedging Losses (Aug 01)
- Devon Energy Plans to Lay Off 9 Percent of Staff to Boost Returns (Apr 10)