Devon Energy Corp.’s $533 Million definitive agreement to sell the southern portion of its Barnett Shale position


J.P. Morgan Securities LLC acted as the financial advisor to Devon on the transaction. Vinson & Elkins LLP acted as legal advisor to Devon.

Devon Energy Corp. (NYSE: DVN) has entered into a definitive agreement to sell the southern portion of its Barnett Shale position for $553 million. The transaction is subject to customary terms and conditions and is expected to close in the second quarter of 2018.

Net production from the southern Barnett divestiture assets, which reside primarily in Johnson County, are currently averaging 200 million cubic feet of gas-equivalent per day. Field-level cash flow accompanying these assets, which excludes overhead costs, is expected to be approximately $100 million in 2018.

The company’s remaining position in the Barnett Shale primarily resides in Denton, Wise and Tarrant counties, with current production of 680 million cubic feet of gas-equivalent per day. This position contains an inventory of approximately 1,500 potential locations, consisting of undrilled inventory and horizontal refrac opportunities.

Devon Energy Corporation operates as an independent energy company that is involved primarily in oil and gas exploration, development and production, the transportation of oil, gas, and NGLs and the processing of natural gas. The company, led by David A Hager, Tony D Vaughn and Jeffrey Ritenour, in 2017 recorded $13.949 Billion Revenues.

V&E advised with a team led by partner Mingda Zhao (Picture), John B. Connally, Michael Zarcaro a Emery Choi, Todd Way, Julia Pashin and Larry Nettles.

Involved fees earner: Mingda Zhao – Vinson & Elkins LLP; John Connally – Vinson & Elkins LLP; Michael Zarcaro Jr. – Vinson & Elkins LLP; Emery Choi – Vinson & Elkins LLP; Todd Way – Vinson & Elkins LLP; Julia Pashin – Vinson & Elkins LLP; Larry Nettles – Vinson & Elkins LLP;

Law Firms: Vinson & Elkins LLP;

Clients: Devon Energy Corporation;

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Author: Ambrogio Visconti