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Devon completes $1B sale of Gulf assets

Devon Energy Corp. has completed the $1 billion sale of Gulf of Mexico assets to Houston-based Apache Corp.

BY JAY F. MARKS Modified: June 11, 2010 at 8:50 am •  Published: June 11, 2010
Devon Energy Corp. has completed its $1 billion sale of Gulf of Mexico assets to Apache Corp., the company announced Thursday.

The deal will bring Devon about $840 million after taxes. It covers Devon's interests in about 150 blocks located offshore Texas, Louisiana and Alabama.

"This transaction, coupled with the recent close of the sale of our deepwater assets, essentially completes Devon's exit from the Gulf of Mexico,” Devon CEO John Richels said.

Devon in November announced plans to sell its Gulf and international assets so the company could focus on onshore holdings in North America.

After-tax proceeds from the sale of those assets are expected to exceed $7.5 billion, which was the top end of Devon's estimate when the divestiture plan was announced.

That money is being allocated to accelerating development of Devon's North American onshore properties, debt reduction and share repurchases. When the repositioning is complete, Devon will emerge with even more liquidity and with one of the strongest balance sheets in its peer group, officials said.

Devon has announced the sale of the majority of its international assets. Closing of its Panyu field offshore China is expected later this month, with the sale closings for the company's assets in Brazil and Azerbaijan to follow.