Devon Energy Sells Pipeline Stake
14 July 2016 - 9:30PM
Dow Jones News
Devon Energy Corp. said Thursday that it will sell its 50%
ownership stake in Access Pipeline to Wolf Midstream Inc. for C$1.4
billion (US$1.1 billion).
Wolf is a portfolio company of the Canada Pension Plan
Investment Board.
Devon Chief Executive Dave Hager said the deal ended the
company's divestiture program where it was seeking to sell US$2
billion to US$3 billion in assets. The company has now sold US$3.2
billion.
The deal is expected to close in the third quarter of 2016 and
is subject to customary closing conditions.
The agreement also includes the potential for a C$150 million
payment based on the development of a new thermal-oil project on
Devon's Pike lease in Alberta, Canada. Devon's thermal-oil acreage
is dedicated to Access Pipeline for an initial length of 25
years.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
July 14, 2016 07:15 ET (11:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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