Devon Energy to Form Midstream Master Limited Partnership
Devon Energy Corporation (NYSE:DVN) announced today that its board of
directors has approved a plan to form a publicly traded midstream master
limited partnership (MLP). The MLP is expected to initially own a
minority interest in Devon′s U.S. midstream business. This business
includes natural gas gathering and processing assets located in Texas,
Oklahoma, and Wyoming.
Devon expects the MLP to file a registration statement with the
Securities and Exchange Commission (SEC) in the third quarter of 2013.
Subject to market conditions, an offering of partnership units in the
MLP would follow registration with the SEC.
Devon will own the general partner of the MLP, all of its incentive
distribution rights, and a majority of its common units following
completion of the initial public offering. Devon expects to utilize
proceeds from the sale of MLP common units to fund its continuing
operations.
Due to limitations imposed by U.S. securities laws, Devon will not be
holding a conference call to discuss the content of this release.
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 (Securities Act). This announcement is being issued in
accordance with Rule 135 under the Securities Act.
Devon Energy Corporation is an Oklahoma City-based independent energy
company engaged in oil and gas exploration and production. Devon is a
leading U.S.-based independent oil and gas producer 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.
Devon Energy
Investor Contacts:
Scott Coody, 405-552-4735
or
Shea
Snyder, 405-552-4782
or
Media Contact:
Chip Minty,
405-228-8647
