Devon Energy Announces Consolidation of U.S. E&P Operations

  Devon Energy Announces Consolidation of U.S. E&P Operations

Business Wire

OKLAHOMA CITY -- October 11, 2012

Devon Energy Corporation (NYSE:DVN) today announced plans to consolidate its
U.S. personnel into a single operations group centrally located at the
company’s corporate headquarters in Oklahoma City. As a result, Devon will
close its office in Houston and transfer operational responsibilities for
assets in South Texas, East Texas and Louisiana to Oklahoma City. The company
expects to relocate a number of employees from Houston to Oklahoma City. The
completion of this initiative is expected to be substantially complete by the
end of the first-quarter 2013.

“Consolidating our U.S. operations will improve our ability to quickly shift
the focus of our workforce between project areas as economic conditions
dictate,” said Dave Hager, Devon’s executive vice president of exploration and
production. “In addition, this move will improve the sharing of best practices
and enhance overall operational efficiency.”

Devon expects the announced changes to deliver savings of approximately $80
million annually. The cost reductions will materialize through both lower
general and administrative expenses and reduced capitalized personnel costs.

Reorganization charges are expected to approximate $125 million, with $100
million estimated to be incurred in the fourth-quarter 2012. The remaining
costs will be incurred in the first half of 2013. In aggregate, roughly 20
percent of the total restructuring charges are non-cash.

Devon Energy Corporation is an Oklahoma City-based independent energy company
engaged in oil and gas exploration and production. Devon is a leading
U.S.-based independent oil and gas producer and is included in the S&P 500
Index. For additional information, visit www.devonenergy.com.

This press release includes "forward-looking statements" as defined by the
Securities and Exchange Commission. Such statements are those concerning
strategic plans, expectations and objectives for future operations. All
statements, other than statements of historical facts, included in this press
release that address activities, events or developments that the company
expects, believes or anticipates will or may occur in the future are
forward-looking statements. Such statements are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the control of
the company. These risks include, but are not limited to the volatility of
oil, natural gas and NGL prices; political, economic or public policy changes;
uncertainties inherent in estimating oil, natural gas and NGL reserves;
drilling risks; and environmental risks. Investors are cautioned that any such
statements are not guarantees of future performance and that actual results or
developments may differ materially from those projected in the forward-looking
statements. The forward-looking statements in this press release are made as
of the date of this press release, even if subsequently made available by
Devon on its website or otherwise. Devon does not undertake any obligation to
update the forward-looking statements as a result of new information, future
events or otherwise.

Contact:

Devon Energy Corporation
Investor Contacts
Scott Coody, 405-552-4735
or
Shea Snyder, 405-552-4782
or
Media Contact
Chip Minty, 405-228-8647
 
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