Devon Energy (DVN) Stock Up, Divesting Canadian Pipeline
NEW YORK (TheStreet) -- Devon Energy (DVN) - Get Report is selling its 50% stake in the Access pipeline in Western Canada to the Canada Pension Plan Investment Board for $1.1 billion, Reuters reports.
This completes the U.S. oil producer's divesture plan, making the company $3.2 billion in proceeds.
With the pipeline sold, Devon now hold assets limited to those held through EnLink Midstream Partners (ENLK) which the company helped form in 2014.
MEG Energy (MEGEF) holds the remaining 50% stake in the pipeline and is also looking to sell either part or all of its stake.
Shares of Devon Energy are up 2.56% to $40 in premarket trade.
Crude oil (WTI) is up 1.83% to $45.57 per barrel this morning and Brent crude is up 2.08% to $47.22.
Separately, TheStreet Ratings rated this stock as a "sell" with a ratings score of D.
The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and generally high debt management risk.
You can view the full analysis from the report here: DVN
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.