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Devon to form new midstream firm with Dallas company

Devon Energy Corp. and Dallas-based Crosstex Energy LP have agreed to form a new midstream company.
by Jay F. Marks Published: October 21, 2013
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Devon Energy Corp. has agreed to combine its U.S. midstream assets with those of Dallas-based Crosstex Energy LP to form a new midstream business, the companies announced Monday morning.

The new company, which will be named before the Devon-Crosstex deal closes early next year, is expected to have adjusted earnings of about $700 million in 2014.

“The combined company's midstream assets and expertise greatly accelerate the value proposition of Devon's previously announced stand-alone master limited partnership in a manner that is highly accretive to our shareholders,” Devon CEO John Richels said. “Additionally, this transaction provides Devon a market-based valuation for these assets on a go forward basis.”

Devon had been moving toward creating a master limited partnership for its midstream assets, a notion first raised during February's fourth-quarter earnings call. Spinoff Devon Midstream Partners LP filed a registration statement with the U.S. Securities and Exchange Commission on Sept. 27.

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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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