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Devon Energy Corp. said Monday it and its joint partnership EnLink Midstream Partners, LP would buy $4.05 billion in oil assets from private-equity firm EnCap Investments. The deal comes as oil and gas prices continue to slump.

Devon is buying 80,000 net surface acres in the Anadarko Basin region in Oklahoma for $1.9 billion and 253,000 net acres in the Powder River Basin in Wyoming for $600 million. The transactions will be funded with approximately $1.35 billion of Devon equity and $1.15 billion of cash and debt. Devon will also divest $2 billion to $3 billion in noncore upstream assets to strengthen its books.

EnLink, a joint-venture pipeline and storage master limited partnership with Devon and Crosstex Energy LP, along with EnLink Midstream, LLC will buy Tall Oak Midstream, which has midstream gathering and processing assets, for $1.55 billion. The price will be paid in installments. The first payment of $1.05 billion will be paid at closing and the remaining $500 million will be paid within a year of closing. $250 million of the final payment could be delayed up to two years past the closing date.

Devon shares are down 34% year-to-date.

Write to Austen Hufford at austen.hufford@wsj.com

(END) Dow Jones Newswires

December 07, 2015 08:15 ET (13:15 GMT)

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