Monday, November 16, 2009

Devon divests

Devon is selling all of its Gulf of Mexico and international assets:

OKLAHOMA CITY, Nov. 16 /PRNewswire-FirstCall/ -- Devon Energy Corporation (NYSE: DVN) today unveiled its plan to strategically reposition Devon as a high-growth North American onshore company. Devon intends to divest all of its Gulf of Mexico and international assets. The company plans to direct proceeds to its high-return U.S. and Canadian onshore portfolio and to retire debt.

"Devon's success has led to an overabundance of opportunities, and this repositioning will allow us to optimize value for our shareholders," said J. Larry Nichols, chairman and chief executive officer. "We do not believe that the value of our high-quality Gulf and international assets is being adequately reflected in our stock price. By monetizing these assets, we will realize their full value, allowing us to unleash the growth potential that resides within our world-class onshore assets."

"Following the divestitures, Devon will be uniquely positioned to deliver high organic growth on a sustainable basis, funded entirely with internally generated funds. Furthermore, we expect Devon to emerge with an even stronger balance sheet and one of the lowest overall cost structures in our peer group," added Nichols.

Devon then becomes a North American pure play onshore company--something Wall Street will understand.

This news has to be good for the stock

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