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Devon’s $2.5 Billion Shale Grab Prompts Downgrade Warnings

  • Moody's, S&P place Devon debt under review on debt concerns
  • Devon shares plunge most in six years as oil prices slide
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Devon Energy Corp. agreed to buy oil-drilling rights across an area the size of Los Angeles from Felix Energy LLC for $2.5 billion, prompting the biggest credit-rating companies to warn they may downgrade Devon’s debt.

The company will acquire rights to search as many as 10 layers of oil- and gas-soaked rock beneath an 80,000-acre swath in Oklahoma for $1.9 billion, it said Monday in a statement. The company will acquire rights to another 253,000 acres in the Powder River Basin in Wyoming for $600 million.