Devon Energy Corp. announced Thursday that it has completed the divestiture of its 50% ownership in Access Pipeline to Wolf Midstream for $1.1 billion, according to a company press release.
The Oklahoma City-based energy company also has the right to receive an incremental $120 million payment from Wolf Midstream with the sanctioning and development of a new thermal oil project on Devon’s Pikelease in Alberta, Canada.
With the close of Access Pipeline, Devon’s divestiture program is complete. The company received $3.2 billion in total proceeds from the sale. The sale agreement further allows for Access Pipeline tolls to be reduced by as much as 30 percent with the future development of multiple projects at Pike.
Devon says it expects at least two-thirds of the sales proceeds will be utilized for debt reduction, with $1.2B of debt repurchased to date. At least two-thirds of the sales proceeds are expected to be utilized for debt reduction, with $1.2 billion of debt repurchased to date, according to the press release.
