Devon Energy (DVN) - Get Devon Energy Corporation Report reached a deal to sell its Canadian business for C$3.8 billion ($2.8 billion) to Canadian Natural Resources (CNQ) - Get Canadian Natural Resources Limited Report .
The heavy-oil assets in the province of Alberta include thermal in situ (or steam assisted gravity drainage) oilsands production (about 108,200 a day) and its conventional primary heavy crude oil operations (20,100 a day) located near Canadian Natural assets.
At the end of last year, proved reserves associated with the properties amounted to about 409 million barrels of oil, Devon said Wednesday in a statement.
"These high-quality assets complement our existing asset base and provide further balance to our production profile," Canadian Natural Resources President Tim McKay said in a separate statement. Synergies are expected to provide benefits of C$135 million on an annualized basis, he said.
Devon plans to use the proceeds to cut debt; it sees the deal closing by the end of the second quarter.
The Oklahoma-based company also continues to takes steps to sell or spin off its Barnett Shale gas assets in north Texas, which would allow Devon to increase its focus on its high-return U.S. oil growth. The divestiture is expected to close by the end of the year.
Devon was down 1.1% to $26.30 in trading Wednesday, while Canadian Natural Resources was falling slightly to $26.24.