8-KAcquisitions & DispositionsExhibits & Filings

DEVON ENERGY CORP/DE 8-K Report, Acquisition Completed (Jun 14, 2010)

Filed June 14, 2010For Securities:DVN

Summary

Devon Energy Corporation (DVN) reported on June 14, 2010, the completion of a significant divestiture, selling its shallow water oil and gas assets in the Gulf of Mexico to Apache Corporation for $1.05 billion before taxes. This transaction, effective January 1, 2010, resulted in approximately $840 million after taxes. This sale marks the near-complete exit of Devon Energy from its Gulf of Mexico operations, as the company has divested all its assets in this region during 2010. In addition to reporting the asset sale, the filing includes unaudited pro forma condensed financial information. While only the Apache transaction legally required pro forma disclosures, Devon has provided information reflecting the impact of all 2010 Gulf of Mexico divestitures. This broader pro forma presentation is intended to offer investors a clearer view of the company's ongoing operations, excluding all divested Gulf of Mexico assets, thereby highlighting its continuing business segments.

Key Highlights

  • 1Completed the sale of Gulf of Mexico shallow water oil and gas assets to Apache Corporation for $1.05 billion (pre-tax).
  • 2Net proceeds after tax from the sale are approximately $840 million.
  • 3The transaction's effective date was January 1, 2010.
  • 4This divestiture effectively completes Devon Energy's exit from its Gulf of Mexico operations for 2010.
  • 5The company is providing unaudited pro forma financial information that includes all 2010 Gulf of Mexico divestitures, not just the Apache transaction.
  • 6The pro forma information aims to provide investors with a clearer view of continuing operations by excluding all divested Gulf of Mexico assets.

Frequently Asked Questions

Devon Energy reported the completion of the sale of its shallow water oil and gas assets in the Gulf of Mexico to Apache Corporation on June 9, 2010.

The sale price was $1.05 billion before taxes, translating to approximately $840 million after taxes, based on an effective date of January 1, 2010.

This divestiture signifies Devon Energy's near-complete exit from its Gulf of Mexico operations, as the company has divested all its assets in that region during 2010.

Devon Energy believed that presenting pro forma financial information for all 2010 Gulf of Mexico divestitures would be more useful to investors by reflecting its continuing operations and excluding all assets from that region, even though only the Apache sale was legally required for such disclosure.