Devon to create master limited partnership

Devon Energy Corp. has approved a plan to form a master limited partnership (MLP) for a minority interest in Devon's US onshore marketing and midstream business. It includes natural gas gathering and processing assets in Texas, Oklahoma, Wyoming, and Montana.

By OGJ editors
HOUSTON, July 19 -- Devon Energy Corp. has approved a plan to form a master limited partnership (MLP) for a minority interest in Devon's US onshore marketing and midstream business. It includes natural gas gathering and processing assets in Texas, Oklahoma, Wyoming, and Montana.

In the third quarter Devon expects to file with the US Securities and Exchange Commission a registration statement for the planned MLP.

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.

Devon will continue to own a majority interest in its domestic onshore marketing and midstream business, the company said.

Devon intends to use a large 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.

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