NEW ORLEANS (Reuters) - U.S. oil producer Devon Energy Corp said on Monday it was looking to sell even more assets than previously announced in order to focus its portfolio on three shale regions.
Devon is now eyeing asset sales of up to $5 billion as it streamlines operations to the SCOOP/STACK, Permian and Rocky Mountain areas, Dave Hager, Devon’s chief executive, said at the Scotia Howard Weil energy conference in New Orleans.
“We are working on more strategic type moves for the company,” Hager said. “We are working on portfolio simplification of a significant scale as I stand here today.”
The company has no plans to increase its 2018 capital budget of $2.2 billion to $2.4 billion even with the recent rise in oil prices, said Hager, who added extra cash flow will be used to cut debt and boost shareholder returns.
“We’re going to be a lean, efficient company that drives high returns,” he said.
Shares of the Oklahoma City, Okla.-based company fell about 1 percent to $31.97 in morning trading.
Reporting by Ernest Scheyder; Editing by Chizu Nomiyama