Devon Energy Kicks Off Transformation With $2.8 Billion Canada Exit

Devon Energy agreed to sell its Canadian business to Canadian Natural Resources, knocking out a target in the Oklahoma City-based independent energy company’s planned transformation.

Devon Energy Kicks Off Transformation With $2.8 Billion Canada Exit

The $2.8 billion sale to Canadian Natural Resources achieves a “clean and timely exit from Canada” for Devon, says CEO Dave Hager in a statement. (Source: Shutterstock.com)

Devon Energy Corp. on May 29 announced an agreement to sell its Canadian business officially kicking off the Oklahoma City-based independent energy company’s transformation.

Calgary, Alberta-based Canadian Natural Resources Ltd. agreed to buy Devon’s Canadian assets for $2.8 billion (C$3.8 billion). Devon will use proceeds from the sale, expected to close during the second quarter, to pay down debt.

Earlier this year, Devon set out to transform itself into a high-return U.S. oil growth business, which included the possible sale or spin-off of its Canadian and Barnett Shale assets. The end result, core of the core positions in these four basins: the Permian’s Delaware Basin, Stack play, Powder River Basin and Eagle Ford Shale.

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Emily Patsy

Emily Patsy is the senior managing editor for Hart Energy’s Digital News Group. She's responsible for the daily news flow and also manages the A&D Watch and Energy Pulse weekly newsletters.