Devon Energy Announces $2.3 Billion Sale of U.S. Non-Core Assets

  Devon Energy Announces $2.3 Billion Sale of U.S. Non-Core Assets

Business Wire

OKLAHOMA CITY -- June 30, 2014

Devon Energy Corporation (NYSE:DVN) today announced that it has entered into a
definitive agreement to sell all of its non-core U.S. oil and gas properties
to Linn Energy (Nasdaq: LINE, LNCO) for $2.3 billion, or approximately $1.8
billion after tax. The agreement covers Devon’s remaining assets targeted for
divestiture and includes properties in the Rockies, onshore Gulf Coast, and
Mid-Continent regions of the U.S.

“With the sale of our remaining non-core assets, the portfolio transformation
that we announced late last year is now complete,” said John Richels,
president and chief executive officer. “In a short period of time we
transformed our portfolio through three significant steps: the accretive Eagle
Ford entry, the innovative creation of EnLink Midstream, and the sale of our
non-core properties. The sale of Canadian and U.S. non-core properties over
the past few months has generated in excess of $5 billion of proceeds at an
accretive multiple of nearly 7 times 2013 EBITDA.”

“Devon is now concentrated in some of the most attractive North America
resource plays, with liquids expected to approach 60 percent of our production
by year-end and multi-year oil production growth projected to be in excess of
20 percent,” said Richels. “In addition to creating a platform that supports
competitive and high-margin growth, we remain committed to maintaining strong
investment-grade credit ratings. Upon completion of this transaction we will
have reduced our net debt by more than $4 billion this year.”

Devon’s production from these non-core U.S. assets is currently 275 million
cubic feet of gas equivalent per day, of which approximately 80 percent is
natural gas. At December 31, 2013, proved reserves associated with these
properties amounted to 1.242 trillion cubic feet of gas equivalent. EBITDA
accompanying these assets totaled $350 million in 2013.

The transaction is subject to customary terms and conditions and is expected
to close in the third quarter of 2014, with an effective date of April 1,
2014.

Jefferies LLC acted as lead financial advisor to Devon on the transaction.
Credit Suisse Securities (USA) LLC also acted as a financial advisor to Devon
on the transaction. Vinson & Elkins 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.

This press release includes "forward-looking statements" as defined by the
Securities and Exchange Commission (SEC). 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 are identified in our Form 10-K and our other filings
with the SEC. 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
Howard Thill, 405-552-3693
or
Scott Coody, 405-552-4735
or
Shea Snyder, 405-552-4782
or
Media Contact
Tim Hartley, 405-552-4994
 
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