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Monday, June 30, 2014

Devon to sell gas-rich assets to Linn Energy for $2.3 bln, (NYSE: DVN)

Devon Energy Corp said it would sell natural gas-rich assets onshore U.S. Gulf Coast, the Rockies and the mid-continent to Linn Energy for $2.3 billion to reduce debt and focus on more lucrative oil and natural gas liquids.The company said it estimates to reduce its net debt by more than $4 billion this year with the completion of the deal, likely to happen by the end of the third quarter.Devon has raised more than $5 billion from the sale of non-core assets in Canada and the United States over the past few months, helping the company reduce its debt.Oil and natural gas liquids are expected to account for about 60 percent of Devon's output by year-end, Chief Executive John Richels said, adding that the company was targeting multi-year oil production growth of more than 20 percent.

Devon Energy Corporation (Devon) is an independent energy company engaged primarily in the exploration, development and production of oil, natural gas and natural gas liquids (NGLs). Shares of DVN traded higher by 1.42% or $1.13/share to $80.63. In the past year, the shares have traded as low as $52.00 and as high as $79.58. On average, 3387610 shares of DVN exchange hands on a given day and today's volume is recorded at 451320.