OKLAHOMA CITY (AP) — Oil and gas exploration company Devon Energy Corp. is selling some U.S. oil and gas properties to Linn Energy LLC for $2.3 billion.
The properties include those in the Rockies, onshore Gulf Coast and Mid-Continent region, Devon said on Monday. The sale is part of a transformation plan the company announced late last year in which it was looking to sell non-core assets. The properties being sold to Linn Energy produced 275 million cubic feet of natural gas equivalent per day, with proved reserves of 1.242 trillion cubic feet of gas equivalent.
Oklahoma City-based Devon will have lowered its debt by more than $4 billion this year once the sale is complete.
Houston-based Linn Energy said it plans to finance the transaction by selling its Granite Wash assets and other non-producing acreage. The Granite Wash and Cleveland properties are located in the Texas Panhandle and western Oklahoma.
The deal is expected to close in 2014's third quarter.
Devon's stock added 13 cents to $79.63 in morning trading, while shares of Linn Energy rose 23 cents to $31.89.
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