Energy Business

Devon Scores Major Gain On Sale of Equatorial Guinea Ops (DVN)

Devon Energy Corp. (NYSE: DVN) has reached an agreement to sell its oil and gas business in Equatorial Guinea to GEPetrol, the African country’s national oil company.  The value of the transaction was listed as $2.2 billion.  Devon said it anticipates an estimated after-tax gain of roughly $1.7 Billion on the sale, and it expects a close by May 30, 2008.

The Oklahoma City-based energy company noted that this encompasses its 23.75% interest in the Zafiro offshore oil field and includes two currently undeveloped offshore explorations and field development blocks.

Shares of Devon are up almost 2% at $110.37, which would also match a 52-week high for Devon.  With a $49 Billion market cap, this is probably another incremental deal for Devon.  The full company listed $11.362 Billion in 2007 revenues and it listed its net income as roughly $3.6 Billion.  As of December 31, 2008, Devon listed $41.4 Billion in total assets (before backing out over $6.6 Billion in goodwill and other assets), and total liabilities were listed as $19.45 Billion.

You can join our open email distribution list to hear about buybacks, special financings, secondary offerings, M&A, and more previews for other special situations.

Jon C. Ogg
April 8, 2008

Jon Ogg produces the Special Situation Investing Newsletter.  He can be reached at and he does not own securities in the companies he covers.