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Energy Company of the Year - mid cap, 2016: Devon Energy

A stock market darling during many periods this year, Devon Energy has divested a number of non-core assets in order to create a healthy outlook for the months and years ahead. Strategically, the company has put itself in a very strong position.

In terms of acquisitions, in late 2015 the group paid $1.9bn to acquire 80,000 net surface acres – with up to ten prospective zones – in the Anadarko Basin STACK play, acquiring the interest from privately-held Felix Energy, a portfolio company of EnCap Investments. The transaction strengthened Devon Energy’s position in the region to an industry-leading 430,000 acres. At around the same time, the company also agreed to acquire 253,000 net acres in the Powder River Basin for $600m.

In 2014 Devon Energy sold its conventional liquids-rich gas assets in Western Canada, as well as six gas plants and related infrastructure, to Canadian Natural Resources, for $2.8bn. It also sold all of its non-core US oil and gas properties to Linn Energy for $2.3bn.

Most recently, the group sold the Anadarko Basin gathering and processing midstream assets, along with dedicated acreage service rights and service contracts, to EnLink for $1.5bn. The sales are seen as strategic realignments to push the company into new growth areas.

This year has heralded ambitious intentions for expansion, with Devon Energy announcing plans to invest $200m in the Delaware Basin, primarily focusing on the second Bone Spring opportunity to attain greater presence in New Mexico.

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