Devon Energy (DVN) said Thursday it agreed to sell its half stake in the Access pipeline to Canada Pension Plan Investment Board-backed Wolf Midstream for C$1.4 billion ($1.1 billion), the last of its expected asset sales to raise cash during a difficult time in the oil and gas industry.
The deal includes the potential for a C$150 million payment with the sanctioning and development of a new thermal-oil project on Devon's Pike lease in Alberta, Canada.
The pipeline system transports blended bitumen and diluent between the Christina Lake area of Northeastern Alberta and Edmonton.
Devon CEO and president Dave Hager said in a statement that the "highly accretive" sale of Access completes the company's asset divestiture program with proceeds of $3.2 billion, surpassing the top end of its $2 billion to $3 billion target. "Furthermore, the divestiture proceeds significantly strengthen our investment-grade balance sheet and position us to further accelerate investment in our best-in-class U.S. resource plays, led by the Stack and Delaware Basin," he said.
Devon Energy finishes asset sales program
Devon Energy finishes asset sales program
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group