Devon Energy Corp. agreed to a drilling joint venture (JV) on Dec. 10 in the Stack play considered by analysts to be a creative solution as E&Ps remain focused on capital discipline.

The JV, with Dow, spans 133 undrilled locations in the liquids-rich portion of Devon Energy’s Stack position in central Oklahoma. As part of the deal, Devon monetized half of its working interest in the locations in exchange for a $100 million drilling carry over the next four years.

The partnership is the second Devon Energy has formed with Dow in recent years as E&Ps are increasingly left with fewer capital options. The earlier agreement was for a JV partnership in the Barnett Shale the companies entered into in May 2018.

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