Devon Energy sells some Canadian assets for $2.8B
OKLAHOMA CITY (AP) — Devon Energy Corp. said Wednesday that it is selling some assets in Canada for $2.8 billion to Canadian Natural Resources Ltd.
The Oklahoma City-based oil and natural gas company plans to use proceeds to help repay debt from a pending $6 billion acquisition in the Eagle Ford region of Texas.
Devon Energy said that this sale involves some of its smaller operations in Canada and is part of the company's broader effort to sell non-core operations to focus on its core business at existing sites, such as those in the Permian Basin and Barnett Shale regions in Texas.
Canadian Natural, based in Calgary, Alberta, said about 900 Devon employees will join the company. The transaction, which includes natural gas and oil assets, is scheduled to close in April, subject to regulatory approval.
Devon also said Wednesday that it moved to a profit for its fourth quarter, earning $207 million, or 51, cents per share, versus a loss of $357 million, or 89 cents per share, in the prior year, when results were weighed down by asset impairment charges. It earned $1.10 on an adjusted basis. Revenue increased nearly 2 percent to $2.62 billion. Analysts polled by FactSet were anticipating earnings of $1.07 per share on revenue of $2.81 billion.
Devon said its oil production set a new quarterly record during the period, averaging 177,000 barrels per day, which represents growth of 17 percent from 2012.
Shares rose $2.26, a 3.6 percent increase, to $65.17 by midday.