Devon Energy boosts stock buyback program by $3 billion after deal to sell EnLink interests
Shares of Devon Energy Corp. rallied 1.2% in premarket trade Wednesday, after the company said it agreed to sell its interest in EnLink Midstream Partners L.P. and EnLink Midstream LLC for $3.125 billion to an affiliate of Global Infrastructure Partners. The EnLink stock were still inactive ahead of the open. As a result of the deal, the oil and natural gas company said it increased its share repurchase program to $4 billion, from the $1 billion program announced in March. Based on Tuesday’s closing price for Devon’s stock, the new program could represent about 19.4% of the shares outstanding. “The sale of our EnLink interests represents a significant step forward in achieving our 2020 Vision to further simplify our asset portfolio and return excess cash to shareholders,” said Devon Chief Executive Dave Hager. Devon’s stock has lost 5.0% year to date through Tuesday, while the S&P 500 has gained 2.8%. Enlink Midstream Partners’ shares have climbed 15.6% this year, while EnLink Midstream LLC’s stock has edged up 1.1%.