Devon Energy Corp. and Ridgemont Equity Partners are divesting their interests in a natural gas pipeline serving the Permian Basin with a capacity of about 2.5 billion cubic feet a day.
Put onstream November 2024, the Matterhorn Express Pipeline is fully contracted. The system consists of a 510-mile mainline and associated compression that carries gas from the Waha area to Wharton, Texas. It also has delivery capabilities for Katy, Texas, as well as laterals in the Midland Basin, according to operator WhiteWater Development LLC.
The stake sales by Devon and Ridgemont will result in WhiteWater, MPLX LP and Enbridge Inc. owning 65 percent, 10 percent and 10 percent of the pipeline respectively, according to a joint statement.
“WhiteWater’s equity interest in the Matterhorn Express Pipeline will be jointly backed by [infrastructure investors] FIC and I Squared, and WhiteWater will continue to operate the Matterhorn Express Pipeline”, said the statement posted on WhiteWater’s website. The parties expect to complete the transactions in the second quarter.
MPLX separately said its side of the transaction consists of a 5 percent acquisition that would raise its stake to 10 percent for a purchase price of $151 million.
Devon separately said it will receive about $375 million in proceeds. “Proceeds from the divestiture will be used to further strengthen the company’s investment-grade financial position”, it said in its quarterly report. “The monetization of Devon’s equity ownership will not change the terms or conditions of the company’s secured capacity on the pipeline”.
In a separate transaction, Devon said in the report its partnership with BPX for the Blackhawk field in the Eagle Ford shale had been dissolved. That dissolution has resulted in Devon owning around 46,000 net acres with a stake of 95 percent and operatorship.
For the first quarter (Q1), Devon reported $494 million in net profit. That was down from $639 million for the prior three-month period despite revenue rising from $4.4 billion to $4.45 billion. Devon booked an impairment of $254 million from the sale of two corporate real estate assets.
“Adjusting for items analysts typically exclude from estimates, the company’s core earnings were $779 million, or $1.21 per diluted share”, Devon said. That missed the Zacks Consensus Estimate of $1.27 per share.
Q1 2025 results were boosted by a quarter-on-quarter increase in natural gas prices but dampened by a lower production of 815,000 barrels of oil equivalent a day. Oil production totaled 388,000 barrels per day (bpd). Natural gas liquids production came at 203,000 bpd. Natural gas totaled 1.35 billion cubic feet a day.
Operating activities generated $1.94 billion in net cash, up from $1.66 billion for Q4 2024. Cash, cash equivalent and restricted cash stood at $1.23 billion at the end of Q1 2025.
Devon declared a fixed quarterly dividend of $0.24 per share. During the period it repurchased 8.5 million shares for $301 million.
To contact the author, email jov.onsat@rigzone.com
What do you think? We’d love to hear from you, join the conversation on the
Rigzone Energy Network.
The Rigzone Energy Network is a new social experience created for you and all energy professionals to Speak Up about our industry, share knowledge, connect with peers and industry insiders and engage in a professional community that will empower your career in energy.
element
var scriptTag = document.createElement(‘script’);
scriptTag.src = url;
scriptTag.async = true;
scriptTag.onload = implementationCode;
scriptTag.onreadystatechange = implementationCode;
location.appendChild(scriptTag);
};
var div = document.getElementById(‘rigzonelogo’);
div.innerHTML += ” +
‘
‘ +
”;
var initJobSearch = function () {
//console.log(“call back”);
}
var addMetaPixel = function () {
if (-1 > -1 || -1 > -1) {
/*Meta Pixel Code*/
!function(f,b,e,v,n,t,s)
{if(f.fbq)return;n=f.fbq=function(){n.callMethod?
n.callMethod.apply(n,arguments):n.queue.push(arguments)};
if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;
n.queue=[];t=b.createElement(e);t.async=!0;
t.src=v;s=b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t,s)}(window, document,’script’,
‘https://connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘1517407191885185’);
fbq(‘track’, ‘PageView’);
/*End Meta Pixel Code*/
} else if (0 > -1 && 67 > -1)
{
/*Meta Pixel Code*/
!function(f,b,e,v,n,t,s)
{if(f.fbq)return;n=f.fbq=function(){n.callMethod?
n.callMethod.apply(n,arguments):n.queue.push(arguments)};
if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;
n.queue=[];t=b.createElement(e);t.async=!0;
t.src=v;s=b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t,s)}(window, document,’script’,
‘https://connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘1517407191885185’);
fbq(‘track’, ‘PageView’);
/*End Meta Pixel Code*/
}
}
// function gtmFunctionForLayout()
// {
//loadJS(“https://www.googletagmanager.com/gtag/js?id=G-K6ZDLWV6VX”, initJobSearch, document.body);
//}
// window.onload = (e => {
// setTimeout(
// function () {
// document.addEventListener(“DOMContentLoaded”, function () {
// // Select all anchor elements with class ‘ui-tabs-anchor’
// const anchors = document.querySelectorAll(‘a .ui-tabs-anchor’);
// // Loop through each anchor and remove the role attribute if it is set to “presentation”
// anchors.forEach(anchor => {
// if (anchor.getAttribute(‘role’) === ‘presentation’) {
// anchor.removeAttribute(‘role’);
// }
// });
// });
// }
// , 200);
//});
