Talk about a merger Monday for Devon Energy (NYSE:DVN). The North American-focused driller, and its affiliates EnLink Midstream Partners (NYSE:ENLK) and EnLink Midstream, LLC (NYSE:ENLC), announced not one, but three separate transactions all designed to bulk up the company’s core position in two emerging energy basins. In addition to that the company also announced that it will subsequently trim away some of its non-core positions so that it doesn’t diminish its solid financial position amid the worst downturn in the oil market in years. With these deals Devon has secured compelling positions to drive growth today and in the future.
Details on the deals
Reports surfaced last week that something was brewing at Devon Energy with Reuters reporting that Devon was in talks to buy privately held Felix Energy for around $2 billion in cash-and-stock. That deal was subsequently finalized and announced on Monday with Devon shelling out $1.9 billion for Felix, which would give it access to another 80,000 net acres in the STACK play within the Anadarko Basin of Oklahoma. However, in addition to that deal, Devon Energy also announced that it was acquiring 253,000 net acres in the Powder River Basin for $600 million. In total, the company is issuing $1.35 billion in equity to the sellers and $1.15 billion in cash to seal these two deals. For the full article click here
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