December 15, 2015

Devon Energy completes three acquisitions totaling $2.5 billion

Devon Energy made two acquisitions totaling $2.5 billion.

Devon Energy is aggressively expanding its portfolio with recent acquisitions of Felix Energy and Powder River Basin. In the first transaction, Devon Energy will acquire 80,000 net surface acres, with up to 10 prospective zones. In the second deal, the company will obtain 253,000 net acres. Devon Energy will fund both transactions with about $1.35 billion of equity issued to shareholders and $1.15 billion of its own cash and some borrowed.

Dave Hager, president and CEO of Devon, credited the company's moves in recent years as one of the main reasons it's been successful and has been able to reward its dedicated shareholders.

"Devon has made several bold moves over the past few years transforming the company into a leading North American onshore producer with a portfolio that provides an advantaged platform to generate long-term value growth for shareholders," said Hager. "These acquisitions materially core up our position in two of the best emerging North America development oil plays and further upgrade our asset portfolio."

Hager continued by saying that another reason the company has been able to grow is its exclusive focus on the best "oil and gas assets in North America."

"The success we have had growing our asset base has generated an abundance of opportunities within our portfolio," said Hager. "In an effort to focus exclusively on our very best resource plays, strengthen our already solid financial position and drive investor value, we are also announcing our intent to divest non-core assets."

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