Devon Business Practices

[PhiAlpha]

This is a major development for the future of Devon’s development of its STACK position. This JV seemed dead a few months ago and was part of the reason they dropped all their rigs in Oklahoma. I’m surprised it came back from the dead. Certainly doesn’t change the economics of the play or commodity prices but is definitely good news for their Oklahoma operations.

https://www.globenewswire.com/news-r...K-Acreage.html

[gopokes88]

I’ve heard it adds a rig in 2020, which is way better than 0 rigs.

[OkiePoke]

Any comments on the sale of their Barnett assets?

Sold are the company's assets in Barnett Shale (Canada) to Banpu Kalnin Ventures for $770M. Closing is expected in Q2 of next year. The sale completes Devon's (NYSEVN) transformation to a solely U.S.-based oil exploration company.

Alongside, Devon announces a new $1B buyback program, bringing total repurchase authorization to $6B. To date under the program, Devon has bought back nearly 30% of its float for $4.8B.

https://seekingalpha.com/news/352704...-share-buyback

[gopokes88]

Any comments on the sale of their Barnett assets?

Sold are the company's assets in Barnett Shale (Fort Worth*) to Banpu Kalnin Ventures for $770M. Closing is expected in Q2 of next year. The sale completes Devon's (NYSEVN) transformation to a solely U.S.-based oil exploration company.

Alongside, Devon announces a new $1B buyback program, bringing total repurchase authorization to $6B. To date under the program, Devon has bought back nearly 30% of its float for $4.8B.

https://seekingalpha.com/news/352704...-share-buyback

They're probably done divesting assets for now. Which is good, they can keep focusing on growth. The job losses should stop and maybe even a little growth. (and by little I mean like 10 a year) I've heard the Barnett business unit was already laid off/transferred into other pieces of the company.

Their balance sheet is absurdly strong. Buybacks didn't really work......like at at. They've spent $5 billion and the company is only worth 9.3 billion. I'd have a hard time believing had they just left that cash on the balance sheet, they wouldn't be worth more. Hindsight is always 20/20 though.

[Dob Hooligan]

They're probably done divesting assets for now. Which is good, they can keep focusing on growth. The job losses should stop and maybe even a little growth. (and by little I mean like 10 a year) I've heard the Barnett business unit was already laid off/transferred into other pieces of the company.

Their balance sheet is absurdly strong. Buybacks didn't really work......like at at. They've spent $5 billion and the company is only worth 9.3 billion. I'd have a hard time believing had they just left that cash on the balance sheet, they wouldn't be worth more. Hindsight is always 20/20 though.

Am I correct in thinking Devon and Continental are well positioned to ride out any downturn?

[PhiAlpha]

Am I correct in thinking Devon and Continental are well positioned to ride out any downturn?

Continental - Yes, Devon - Probably but it definitely depends on how long it lasts and how depressed prices become.

[gopokes88]

They had an accounting marketing and finance lay-off on Thursday. About 50.

Engineers and IT next week or week after.

[gopokes88]

Buying WPX

https://mobile.reuters.com/article/a....co/C8v7wRRJZx

[PhiAlpha]

Buying WPX

https://mobile.reuters.com/article/a....co/C8v7wRRJZx

A buddy of mine at WPX told me about this Thursday night. Should’ve reported it and broken the story!

[Plutonic Panda]

Didn’t they just build a new HQ in Tulsa?

[gopokes88]

Somebody gonna get to buy a sweet new HQ

[Pete]

The WPX website says they have 450 employees (or they did when that was written).

Do we expect all/most the jobs to come to OKC?

[BG918]

Didn’t they just build a new HQ in Tulsa?

Currently under construction

[thunderbird]

A buddy of mine at WPX told me about this Thursday night. Should’ve reported it and broken the story!

That’s how deals fall apart. I don’t understand why people can’t keep something so unimportant To the outside world to themselves for a Few weeks.

[gopokes88]

The WPX website says they have 450 employees (or they did when that was written).

Do we expect all/most the jobs to come to OKC?

You should expect MAYBE 100

[C_M_25]

You should expect MAYBE 100

Maaaayyyyyyybe. It's being called a "merger of equals." I could see WPX advocating for more of their people.

[shavethewhales]

While I don't pretend to have read through all the details extensively, it looks like a bad deal. WPX is being bought out for less than what it traded for just a few weeks ago. They are in a relatively strong position with a new HQ going up. It doesn't make sense except for maybe a few people at the top deploying their golden parachutes.

[Jake]

Sucks for Tulsa. The energy industry has failed them time and time again.

[gopokes88]

Maaaayyyyyyybe. It's being called a "merger of equals." I could see WPX advocating for more of their people.

It’s not a merger of equals.

Devon shareholders own a majority of the new entity. Board seats.
It’s called Devon Energy, in Devon energy’s tower, in OKC.

Most of WPX will get wiped out. That’s why these deals get done. Scale.
WPX’s Bakken business unit may get transferred over because Devon doesn’t have one.

[gopokes88]

While I don't pretend to have read through all the details extensively, it looks like a bad deal. WPX is being bought out for less than what it traded for just a few weeks ago. They are in a relatively strong position with a new HQ going up. It doesn't make sense except for maybe a few people at the top deploying their golden parachutes.

It’s a great deal for Devon and OKC.

It’s not great for WPX and Tulsa.

It’s overall good for Oklahoma. Both companies were at risk of being bought by Houston companies.

[BG918]

Sucks for Tulsa. The energy industry has failed them time and time again.

Tulsa, like OKC, has been actively diversifying away from O&G. It’s still a large portion of the local economy but nowhere near as large as it once was, and not a significant part of the city’s future growth industries.

[C_M_25]

It’s not a merger of equals.

Devon shareholders own a majority of the new entity. Board seats.
It’s called Devon Energy, in Devon energy’s tower, in OKC.

Most of WPX will get wiped out. That’s why these deals get done. Scale.
WPX’s Bakken business unit may get transferred over because Devon doesn’t have one.

To be fair, Devon and WPX are very close in size from a market cap standpoint hence the "merger of equals."

Devon does own a majority, but it's not an overwhelming majority. Also, WPX's CEO is now running "Devon." Also, the board is pretty evenly split. It will be interesting to see how this plays out.

[gopokes88]

To be fair, Devon and WPX are very close in size from a market cap standpoint hence the "merger of equals."

Devon does own a majority, but it's not an overwhelming majority. Also, WPX's CEO is now running "Devon." Also, the board is pretty evenly split. It will be interesting to see how this plays out.

It won’t be interesting. WPX will lay-off 75%, remaining transferred to okc.

This was negotiated by the two companies throughout the deal. Devon is the operator, Devon employees stay. Ever single merger works this way especially in the shale era.

[PhiAlpha]

Yeah they are moving very quickly. All personnel decisions will likely be made by the end of the week if not the end of the day. All remaining WPX employees will officially be employees of Devon at the close of business today.

[BoulderSooner]

Yeah they are moving very quickly. All personnel decisions will likely be made by the end of the week if not the end of the day. All remaining WPX employees will officially be employees of Devon at the close of business today.

what they will officially be devon employees before the deal closes??