Devon Energy Sells Texas Chalk Midstream Assets

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 to closing.

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."