Devon Energy Sells Canadian Assets to Pay Down Eagle Ford Debt

Devon Energy Core & Emerging Asset Map
Devon Energy Core & Emerging Asset Map

Devon Energy completed the sale of its Canadian conventional assets to Canadian Natural Resources for $2.7 billion after taxes.

The company will use the money to pay down debt acquired from a $6 billion purchase of GeoSouthern's Eagle Ford assets, which was completed on February 28th.

Read more: Devon Acquires Eagle Ford Assets from GeoSouthern for $6 Billion

Devon considers its' Eagle Ford Shale acreage as core to its portfolio, and plans on divesting its non-core US assets by the end of the year. Devon's other US core areas are in the Barnett Shale, Anadarko Basin and Permian Basin. The Mississippian-Woodford and the Powder River and Wind River Basins in the Rockies are emerging assets in the company's portfolio.

Devon's 2014 Eagle Ford Outlook

In 2014, Devon plans on investing $1.1 billion in the Eagle Ford and will drill more than 200 wells. The company estimates average net production through October, 2014, of 70,000 – 80,000 boe/d in the play, with peak average production estimates in the play of ~140,000 boe/d over the next several years.

After the sale of it's Canadian assets are completed, Devon will retain it's Lloydminster and Horn River area heavy oil assets, located in Eastern Alberta.