Devon Energy to offload Barnett Shale assets in Johnson County for $553m

Independent exploration and production firm Devon Energy has signed a $553m agreement to sell the southern portion of the Barnett Shale in the US.

Located in Johnson County, the assets currently have an average net production of 200 million cubic feet of gas equivalent per day. They are expected to contribute field-level cash flow of around $100m this year.

Devon Energy president and CEO Dave Hager said: “Combined with other recent asset sales, divestiture proceeds associated with our 2020 Vision have now reached $1bn.

“We are very confident about Devon’s future and, as market conditions permit, we will continue to pursue opportunities to further increase cash returns to our shareholders.”

Even after the sale is completed, Devon will continue to retain its position in the Barnett Shale in Denton County, Wise County and Tarrant County. These retained assets currently produce 680 million cubic feet of gas equivalent per day.

In addition, the acreage contains an inventory of around 1,500 potential locations that offer the company undrilled inventory and horizontal refrac opportunities.

Subject to certain customary closing conditions, the completion of the transaction is anticipated in Q2 2018.