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November 16, 2009

Devon Energy to sell Gulf of Mexico assets, others

OKLAHOMA CITY (AP) — Independent oil and gas producer Devon Energy says it will divest its Gulf of Mexico and international assets.



Devon expects the divestitures will create after-tax proceeds of $4.5 billion to $7.5 billion. The company plans to use the proceeds to invest in its U.S. and Canadian portfolio and retire debt. The sales will add to earnings, cash flow, production and reserves beginning in 2011, the company says.



CEO J. Larry Nichols says the company does not believe the value of the assets are adequately reflected in Devon's stock price.



The company expects to begin divesting the properties in the first quarter of 2010 and will complete the divestitures throughout next year.



Devon Energy Corp. is based in Oklahoma City.

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