Summary
Devon Energy Corporation (DVN) announced a significant acquisition on November 20, 2013, through its wholly-owned subsidiary, Devon Energy Production Company, L.P. The company has entered into a Purchase and Sale Agreement to acquire interests in affiliates that own oil and gas properties, mineral interests, and related assets located in the Eagle Ford Formation. This strategic move involves acquiring the Acquired Company Assets from GeoSouthern Intermediate Holdings, LLC for approximately $6 billion. The acquisition is expected to close in the first quarter of 2014, subject to customary closing conditions, including regulatory clearance under the Hart-Scott-Rodino Act and the repayment of acquired companies' indebtedness. Devon Energy plans to fund this substantial transaction using a combination of existing cash reserves and debt financing. This filing serves to inform investors of this material definitive agreement and provides details on the terms and conditions.
Key Highlights
- 1Devon Energy to acquire Eagle Ford Formation assets for approximately $6 billion.
- 2The acquisition will be completed through a wholly-owned subsidiary, Devon Energy Production Company, L.P.
- 3The target assets are owned by affiliates of GeoSouthern Intermediate Holdings, LLC.
- 4The transaction is expected to close in the first quarter of 2014.
- 5The purchase price is subject to customary adjustments for title, environmental defects, and operational performance.
- 6Devon Energy plans to fund the acquisition with cash on hand and debt financing.
- 7Closing conditions include Hart-Scott-Rodino Act clearance and repayment of acquired companies' debt.