Devon Energy Announces C$3.125 Billion Sale of Canadian Conventional Assets

  Devon Energy Announces C$3.125 Billion Sale of Canadian Conventional Assets

Business Wire

OKLAHOMA CITY -- February 19, 2014

Devon Energy Corporation (NYSE:DVN) today announced that it has entered into a
definitive agreement to sell the majority of its Canadian conventional assets
to Canadian Natural Resources Limited for C$3.125 billion, or US$2.8 billion
using the current exchange rate. The sale excludes the company’s Horn River,
Lloydminster and thermal heavy oil assets located in Canada. At December 31,
2013, proved reserves associated with the divestiture totaled approximately
170 million barrels equivalent. The transaction is subject to customary terms
and conditions and is expected to close early in the second quarter of 2014.

Upon close of the transaction, the company plans to immediately repatriate the
proceeds to the U.S. for use in the repayment of debt incurred to finance its
Eagle Ford acquisition. The company expects net proceeds of US$2.7 billion
after adjusting for currency exchange and taxes associated with the sale and
repatriation of the funds to the U.S.

“This agreement represents a significant step forward in the execution of our
non-core divestiture process,” said John Richels, president and chief
executive officer. “This tax-efficient transaction provides for a clean exit
from our Canadian conventional business at a value of nearly 7 times 2013
EBITDA, a substantial premium compared to Devon’s current trading multiple.
Furthermore, the timely execution of the largest piece of our non-core
divestiture process accelerates the refocus on core assets.”

The divestiture process is ongoing for the company’s remaining non-core
properties in the U.S. Devon expects to complete these U.S. divestitures by
year end.

Advisors

Scotia Waterous acted as lead financial advisor to Devon on the transaction.
BMO Capital Markets also acted as a financial advisor to Devon on the
transaction and has provided a fairness opinion to the Board of Directors of
Devon. Osler, Hoskin & Harcourt LLP acted as legal advisor to Devon.

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.

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
 
Press spacebar to pause and continue. Press esc to stop.