UPDATE: Devon Energy Announces $1.4 Billion Joint Venture; Shares Slip More Than 2.5%

By MidnightTrader.com Staff,

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Devon Energy Corporation ( DVN ) has signed an agreement with Sumitomo Corporation whereby Sumitomo will invest $1.4 billion in exchange for 30% of Devon's interest in approximately 650,000 net acres in the Cline Shale and the Midland-Wolfcamp Shale.

Under the terms of the agreement, Sumitomo will invest $340 million in cash upon closing and an additional $1.025 billion will be invested in the form of a drilling carry. Devon expects the entire $1.025 billion carry to be realized by mid-2014.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Commodities
Referenced Stocks: DVN

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