OKLAHOMA CITY, July 18 /PRNewswire-FirstCall/ -- Devon Energy
Corporation (NYSE: DVN) announced today that its board of directors has
approved a plan to form a new, publicly-traded master limited partnership
(MLP). The MLP will own a minority interest in Devon's U.S. onshore
marketing and midstream business. This business includes natural gas
gathering and processing assets located in Texas, Oklahoma, Wyoming and
Montana.
Devon expects to file with the United States Securities and Exchange
Commission (SEC) a registration statement for the planned MLP in the third
quarter of 2007. An offering of partnership units in the MLP will follow
registration with the SEC.
A Devon subsidiary will serve as the general partner of the MLP, and
Devon expects to own a majority of the partnership units following
completion of the initial public offering. Following the offering, Devon
will continue to own a majority interest in its domestic onshore marketing
and midstream business.
Devon currently expects to utilize a significant portion of the
proceeds from the sale of MLP units to retire debt of the parent company
and to repurchase shares of its common stock. Any remaining proceeds would
also be available to Devon for payment of dividends and other corporate
purposes.
"The purpose of creating a master limited partnership is to allow the
marketplace to more fully measure the performance and contribution of
Devon's marketing and midstream business while applying the proceeds in a
manner beneficial to our stockholders," commented J. Larry Nichols,
chairman and chief executive officer.
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy securities. Any offers, solicitations or
offers to buy, or any sales of securities will be made in accordance with
the registration requirements of the Securities Act of 1933, as amended.
Due to limitations imposed by U.S. securities laws, Devon will not be
holding a conference call to discuss the content of this release.
Devon Energy Corporation is an Oklahoma City-based independent energy
company engaged in oil and gas exploration and production and is included
in the S&P 500 Index.
The statements in this news release are forward-looking statements that
are subject to a number of risks and uncertainties including, among other
things, the risks and uncertainties that the master limited partnership
will not be formed, will not complete an offering of securities, will not
raise the planned amount of capital even if an offering of securities is
completed, and will not be able to complete its proposed actions on the
timetable indicated. Furthermore, the structure, nature, purpose, and
proposed assets and liabilities of the master limited partnership may
change materially from those depicted herein. No assurance can be given as
to the value of the master limited partnership, the price at which its
securities may trade, or whether a liquid market for those securities will
develop or be maintained. In addition, Devon and the master limited
partnership will be subject to the risks normally attendant to businesses
in the oil and gas exploration and midstream energy industries. These and
other risks are described in Devon's 10-K and 10-Q Reports and other
filings with the Securities and Exchange Commission. Any duty to update
these statements is disclaimed except as required by law.
SOURCE Devon Energy Corporation
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Related links:
http://www.devonenergy.com
http://www.prnewswire.com/comp/118040.html/
CONTACT:
Investors, Zack Hager, +1-405-552-4526,
Media, Brian Engel, +1-405-228-7750, both of Devon Energy
Corporation
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