The Finch Formerly Known As Gold

24 January 2007

Devon backs off

Oklahoma City-based Devon Energy is selling off all of its West African operations, about four percent of its proved reserves. The properties are located in Equatorial Guinea, Gabon and Côte d'Ivoire. Whatever Devon gets for the sale, they say, will be used to pay off commercial paper and repurchase company stock.

Motivations, according to the press release:

  • Tighter geographic focus,
  • Lower overall portfolio risk,
  • Improved capital efficiency, and
  • Improved financial flexibility.

For "lower overall portfolio risk" I read "no more having to deal with the president of Equatorial Guinea," who is a bad egg of Mugabean magnitude.

Posted at 6:23 AM to Family Joules