Devon Energy Corp. has sold its stakes in aggregate ownership interests in EnLink Midstream Partners, and EnLink Midstream, to an affiliate of Global Infrastructure Partners (GIP), a leading global, independent infrastructure fund manager for $3.125 billion. In conjunction with this sale agreement, Devon’s board of directors has increased the size of the company’s share-repurchase authorization to $4 billion.
“The sale of our EnLink interests represents a significant step forward in achieving our 2020 Vision to further simplify our asset portfolio and return excess cash to shareholders,” said Dave Hager, president and CEO. “This highly accretive transaction provides a strategic exit from EnLink at a value of 12 times cash flow, a substantial premium to Devon’s current trading multiple. The EnLink proceeds, combined with proceeds from the noncore E&P assets already sold and those currently being marketed, will exceed our $5 billion divestiture target.”
In conjunction with the EnLink transaction, Devon’s board of directors authorized a $3 billion increase to the company’s previously announced $1 billion share-repurchase program, bringing the total repurchase program to $4 billion. The $3 billion increase in authorization extends through Dec. 31, 2019, and is conditioned upon the closing of the EnLink transaction, which is expected to close in July 2018. As of April 30, 2018, Devon had completed $204 million of repurchases under the program totaling 6.2 million shares.
