Shares of Devon Energy soared as much as 15% to its highest in three months, after the company announced the sale of its Canadian and Barnett Shale assets and raised its dividend.
Analysts are divided in their opinions regarding the exact value of the Canadian asset sales. Some think they could sell for $3.5 - $5 billion, while others think they could sell even higher at $7 - $9 billion.
However, analysts are also not certain how resourceful these divestments are going to be in the long run. This uncertainly is due the fact that Alberta is currently facing forced production curbs designed to draw down a crude oil glut, coupled with a lack of long-term pipeline takeaway capacity in western Canada.
Canadian oil sands companies like Imperial Oil, Canadian Natural, Husky Energy, and Suncor Energy are the usual suspects according to analysts to make purchases of DVN’s assets. But DVN's preference for cash to pay down debt may make a Husky an uncertain buyer.
IMO could also be a likely buyer since DVN’s assets could help it improve heavy oil prices.