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Devon Energy to sell midstream stakes worth USD3.1bn to GIP

June 09/2018

MOSCOW (MRC) -- Devon Energy has entered into an agreement with Global Infrastructure Partners (GIP) to sell its stakes in EnLink Midstream Partners (ENLK) and EnLink Midstream (ENLC) for USD3.1bn, as per Compello.

The transaction is expected to reduce Devon Energys consolidated debt by 40%. The company had a debt of USD10.29bn at the end of 2017.

Devon Energy president and CEO Dave Hager said: "The sale of our EnLink interests represents a significant step forward in achieving our 2020 Vision to further simplify our asset portfolio and return excess cash to shareholders."

The transaction is subject to customary terms and conditions and is expected to be completed in July 2018. Following the completion of the transaction, the EnLink Midstream companies (EnLink) will continue a commercial relationship with Devon under long-term commercial contracts.

The companies will continue to partner to maximize returns in the STACK, redevelop the Barnett Shale, and team on new potential opportunities, such as crude gathering in the Delaware Basin.

Devon will extend its fixed-fee gathering and processing contracts with respect to the Bridgeport and Cana plants with EnLink through 2029.

Hager said: "EnLink remains a preferred partner for us in the midstream space, and we will continue to pursue mutually beneficial ways to grow our respective businesses across North Americas most prolific growth basins."

After the completion of the stake sale, the infrastructure fund manager GIP will 100% stake in EnLink Midstream Manager, nearly 64% limited partner equity interest in ENLC, and an approximate 23% limited partner equity interest in ENLK.

In conjunction with the EnLink transaction, Devon has also decided to increase its share repurchase program from USD1bn to USD4bn.

However, the expanded share repurchase program, which will extend through 31 December 2019, is subject to the closing of the EnLink transaction.

Based in Oklahoma City, Devon operates in several of the most prolific oil and natural gas plays in the US and Canada.
Author:Anna Larionova
Tags:petroleum products, petrochemistry, Crude oil.
Category:General News
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