Devon Energy Announces Plan to Strategically Reposition Company as High-Growth, Onshore North American Exploration and Production Company
http://www.devonenergy.com/Newsroom/Pages/NewsRelease.aspx?id=1355657
OKLAHOMA CITY, Nov. 16 /PRNewswire-FirstCall/ -- Devon Energy Corporation (NYSE: DVN) today unveiled its plan to strategically reposition Devon as a high-growth North American onshore company. Devon intends to divest all of its Gulf of Mexico and international assets. The company plans to direct proceeds to its high-return U.S. and Canadian onshore portfolio and to retire debt.
"Devon's success has led to an overabundance of opportunities, and this repositioning will allow us to optimize value for our shareholders," said J. Larry Nichols, chairman and chief executive officer. "We do not believe that the value of our high-quality Gulf and international assets is being adequately reflected in our stock price. By monetizing these assets, we will realize their full value, allowing us to unleash the growth potential that resides within our world-class onshore assets."
"Following the divestitures, Devon will be uniquely positioned to deliver high organic growth on a sustainable basis, funded entirely with internally generated funds. Furthermore, we expect Devon to emerge with an even stronger balance sheet and one of the lowest overall cost structures in our peer group," added Nichols.
The attached presentation has a dynamite look at the Carthage and "Southern" Haynesville acreage position. The webcast also has good detail on the area.
Webcast: http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c...
OKLAHOMA CITY, Nov. 16 /PRNewswire-FirstCall/ -- Devon Energy Corporation (NYSE: DVN) today unveiled its plan to strategically reposition Devon as a high-growth North American onshore company. Devon intends to divest all of its Gulf of Mexico and international assets. The company plans to direct proceeds to its high-return U.S. and Canadian onshore portfolio and to retire debt.
"Devon's success has led to an overabundance of opportunities, and this repositioning will allow us to optimize value for our shareholders," said J. Larry Nichols, chairman and chief executive officer. "We do not believe that the value of our high-quality Gulf and international assets is being adequately reflected in our stock price. By monetizing these assets, we will realize their full value, allowing us to unleash the growth potential that resides within our world-class onshore assets."
"Following the divestitures, Devon will be uniquely positioned to deliver high organic growth on a sustainable basis, funded entirely with internally generated funds. Furthermore, we expect Devon to emerge with an even stronger balance sheet and one of the lowest overall cost structures in our peer group," added Nichols.
The attached presentation has a dynamite look at the Carthage and "Southern" Haynesville acreage position. The webcast also has good detail on the area.
Webcast: http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c...
Tags: Barnett, Devon, Haynesville, Marcellus, Shale
Views: 91
- Attachments:
Replies to This Discussion
-
Permalink Reply by JWC on -
Sure does. Also they are going to drill 100 wells in the Haynesville Shale South Area over the next two years. That's 4.16... wells per month. They better get started. haha.
-
Permalink Reply by DJG on
-
All great news for everyone in the HS play.
A few items of particular interest are pages 22 and 23 of the pdf presentation. Overall it says they have 65 planned drill sites in San Augustine, Shelby, Sabine, Nagodoches counties and Sabine Parrish scheduled in 2010.
Slide #46 of the webcast presentation is pretty interesting as well, as it details the "Haynesville Growth Potential" for Devon in the Greater Carthage (primarily Shelby and Panola Co, but some Harrison and Rusk) and Southern Areas (San Augustine, Sabine, Nagodoches, Sabine Parrish). The slide predicts gearing upwards to as many as 20-25 rigs+ opperating in the region from 2011-2014 and beyond.
Slide #45: "Haynesville Type Curve" for the Greater Carthage region. Showing 70% decline in first year, 35% year 2, 22% year 3, 15% year 4, 12% year 5, onward.... Also showing average EUR per well in that region at just above 6.0 BCFE / Average IP at 6.5 mmfcd / Average Well Cost at $8 million.
All interesting news indeed.
-
Permalink Reply by DJG on
-
FYI - Devon has an additional investor presentation scheduled for Wednesday so it will be interesting to see if there is any further new information released at that time.
-
Permalink Reply by Keeth McKneely on
-
Has anyone got an offer recently from Devon?
Support GoHaynesvilleShale.com
Top Content
Blog Posts
The Lithium Connection to Shale Drilling
Shale drilling and lithium extraction are seemingly distinct activities, but there is a growing connection between the two as the world moves towards cleaner energy solutions. While shale drilling primarily targets…
ContinuePosted by Keith Mauck (Site Publisher) on November 20, 2024 at 12:40
Not a member? Get our email.
Groups
-
Franklin County, Texas
9 members
-
Cass County, TX
120 members
-
Rusk County
97 members
-
Livingston Parish, LA
34 members
-
San Augustine, TX
386 members
-
Miller County, Arkansas
27 members
-
Sabine Parish, LA
455 members
-
South Caddo Parish Group
440 members
-
Natchitoches Parish
400 members
-
Bienville Parish, LA
244 members
© 2024 Created by Keith Mauck (Site Publisher).
Powered by
