April 14, 2020
OKLAHOMA CITY, April 14, 2020 (GLOBE NEWSWIRE) -- Devon Energy Corp. (NYSE:
DVN) and Banpu Kalnin Ventures (BKV) today announced an amendment to the
existing terms of their Barnett Shale purchase and sale agreement. Under the
amended terms, Devon has agreed to sell its Barnett Shale assets to BKV for up
to $830 million of total proceeds, consisting of $570 million in cash at
closing and contingent payments of up to $260 million.
With the amended terms, Devon will receive an increased deposit of $170
million from BKV, and the scheduled closing date for the transaction is
extended from April 15, 2020 to Dec. 31, 2020. The closing payment is subject
to customary purchase price adjustments that, among other things, allocate
revenues and expenses based on a Sept.1, 2019, effective date.
The agreement also provides for contingent cash payments of up to $260
million based upon future commodity prices, with upside participation beginning
at either a $2.75 Henry Hub natural gas price or a $50 West Texas Intermediate
oil price. The contingent payment period commences on Jan. 1, 2021 and has a
term of four years. The contingent payments are earned and paid on an annual
basis.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of
the federal securities laws. Such statements are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the control of
the company. These risks include, but are not limited to:the risk that
financing constraints or other factors prevent BKV from closing the transaction
or paying the additional deposit amount; the risk of further delays in closing
or the failure to consummate the transaction altogether; the risk that the
amount of proceeds actually received will be less than anticipated due to
purchase price adjustments or otherwise; the risk that depressed commodity
prices prevent Devon from earning some or all of the contingent payments; and
the other risks identified in the Companys Annual Report on Form 10-K and
its other filings with the Securities and Exchange Commission. Investors are
cautioned that any such statements are not guarantees of future performance and
that actual results or developments may differ materially from those projected
in the forward-looking statements. The forward-looking statements in this press
release are made as of the date hereof, and the company does not undertake any
obligation to update the forward-looking statements as a result of new
information, future events or otherwise.
About Devon Energy
Devon Energy is a leading independent energy company engaged in finding and
producing oil and natural gas. Based in Oklahoma City and included in the S&P
500, Devon operates in several of the most prolific oil and natural gas plays
in the U.S. with an emphasis on achieving strong corporate-level returns and
capital-efficient cash-flow growth. For more information, please visit
www.devonenergy.com and see our related Form 10-K.
Investor Contacts Media Contact
Scott Coody, 405-552-4735 John Porretto, 405-228-7506
Chris Carr, 405-228-2496