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.
- In the past, we have noted an MLP it filed to pay down debt.
- This call is a bit dated now, but Jim Cramer listed this as one of his favorite oil picks for 2007.
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Jon C. Ogg
April 8, 2008
Jon Ogg produces the Special Situation Investing Newsletter. He can be reached at email@example.com and he does not own securities in the companies he covers.