Devon Energy ready to cash in on 2010 asset sales

Devon Energy Corp. expects to bring back to the United States about $2 billion from some 2010 asset sales, thanks to a change in its tax position, officials said Wednesday.
by Jay F. Marks Modified: May 1, 2013 at 9:44 pm •  Published: May 2, 2013

He said Devon will use that cash to repay outstanding debt once it is back in the U.S.

“Beyond that, we will allocate capital as we always have by assessing the relative attractiveness of E&P (exploration and production) expenditures versus share repurchases and debt repayments, in an effort to optimize growth and cash flow per share,” he said.

Agosta said Devon has used about $500 million from its asset sales to fund ongoing operations in Canada.

Production growth

Devon is working to expand its operations in the oil sands, but the bulk of its first-quarter production growth came in the U.S.

“Our continued focus on oil production growth is successfully transitioning Devon's production mix to a higher oil weighting, as evidenced by our first-quarter results,” Richels said. “Oil and liquids production, our highest margin products, now account for 41 percent of our total production.

“Driven by our success in the Permian, we are on track to grow our U.S. oil production by almost 40 percent in 2013.”

Dave Hager, Devon's executive vice president of exploration and production, said also expressed optimism about the company's holdings in the Mississippian formation in north central Oklahoma.

“Strong results from the Mississippian trend confirm our belief that this area will provide the next leg of large-scale, highly economic oil growth for Devon,” he said.

Devon's stock closed Wednesday at $55.24, up 18 cents.

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by Jay F. Marks
Energy Reporter
Jay F. Marks has been covering Oklahoma news since graduating from Oklahoma State University in 1996. He worked in Sulphur and Enid before joining The Oklahoman in 2005. Marks has been covering the energy industry since 2009.
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