QL Capital Partners LP

QL Capital Partners LP and Devon Energy Corp. have entered into an agreement to create a new partnership to fund selected gas gathering and compression assets owned by Devon in the Company’s highly productive “Cotton Draw” development area within the Delaware Basin.

As part of the transaction, Devon will contribute its existing gas gathering and compression infrastructure within an area of mutual interest to Cotton Draw Midstream LLC, a newly formed partnership which Devon will continue to operate pursuant to a management services agreement.  Devon will dedicate to the partnership approximately 24,000 gross upstream acres for gathering and compression on the partnership’s system. Per the terms of the agreements, QLCP will fund a $100 million distribution to Devon, and will also fund the majority of incremental partnership capital to build out the Cotton Draw midstream assets over the next several years.