8-KAcquisitions & DispositionsRegulation FDExhibits & Filings

DEVON ENERGY CORP/DE 8-K Report, Acquisition Completed (Jul 18, 2018)

Filed July 18, 2018For Securities:DVN

Summary

Devon Energy Corporation (DVN) has completed the sale of its non-core midstream assets to affiliates of Global Infrastructure Partners for $3.125 billion. The transaction involved the transfer of common units in EnLink Midstream, LLC (ENLC) and EnLink Midstream Partners, LP (MLP), as well as interests in EnLink Midstream Manager, LLC. This divestiture represents a significant strategic move by Devon Energy to streamline its operations and focus on its core upstream business. Investors should note that the company has provided unaudited pro forma financial information reflecting the impact of this transaction. This filing also includes a press release announcing the closing and references the original purchase agreement filed on June 7, 2018. The completion of this sale is a key event for Devon Energy, signaling a shift in its asset portfolio and financial structure.

Key Highlights

  • 1Devon Energy has successfully closed the sale of certain midstream assets for a total consideration of $3.125 billion.
  • 2The transaction involved the divestiture of common units in EnLink Midstream, LLC (ENLC) and EnLink Midstream Partners, LP (MLP).
  • 3The buyers are affiliates of Global Infrastructure Partners, identified as MLP Acquiror and ENLC Acquiror.
  • 4The sale includes the transfer of all outstanding limited liability company interests in EnLink Midstream Manager, LLC.
  • 5Devon Energy has filed unaudited pro forma consolidated financial information to reflect the impact of this divestiture.
  • 6A press release dated July 18, 2018, was issued to announce the closing of these transactions.

Frequently Asked Questions

Devon Energy sold certain non-core midstream assets, specifically common units representing limited liability company interests in EnLink Midstream, LLC (ENLC) and common units representing limited partner interests in EnLink Midstream Partners, LP (MLP), along with all outstanding limited liability company interests in EnLink Midstream Manager, LLC.

The aggregate consideration for the sale of these midstream assets was $3,125,000,000.

The assets were acquired by MLP Acquiror (GIP III Stetson I, L.P.) and ENLC Acquiror (GIP III Stetson II, L.P.), which are affiliates of Global Infrastructure Partners.

Devon Energy has filed unaudited pro forma consolidated financial information that gives effect to these transactions, allowing investors to understand the post-sale financial position. This sale is expected to allow Devon to focus on its core upstream business.