Currently, the assets are producing approximately 275 MMcfe/d, approximately 80% of which is natural gas, with a shallow base decline of approximately 14%.
The agreement scope includes Devon’s remaining assets targeted for divestiture and includes properties in the Rockies, onshore Gulf Coast, and Mid-Continent regions of the US.
LinnCo chairman, president and chief executive officer Mark Ellis said, "Early in 2014, we outlined four keys to success at LINN: realize value for the Midland Basin position; continue to make accretive acquisitions; reduce capital intensity while increasing efficiency; and improve credit metrics."
Subject to customary terms and conditions, the transaction is scheduled to close in the third quarter of 2014.
Devon Energy president and chief executive officer John Richels said the Canadian and US non-core properties sale over the past few months has generated in excess of $5bn of proceeds at an accretive multiple of nearly 7 times 2013 EBITDA.
"In a short period of time we transformed our portfolio through three significant steps: the accretive Eagle Ford entry, the innovative creation of EnLink Midstream, and the sale of our non-core properties," Richels added.
"Devon is now concentrated in some of the most attractive North America resource plays, with liquids expected to approach 60 percent of our production by year-end and multi-year oil production growth projected to be in excess of 20 percent."
"Upon completion of this transaction we will have reduced our net debt by more than $4 billion this year."
