Devon Energy entered into a definitive agreement in December 2019 to sell its Barnett shale assets to Banpu Kalnin Ventures for $770 million. The transaction is expected to close in the second quarter of 2020. Net production from these assets averaged 597 million cubic feet equivalent per day in the third quarter of 2019, and proved reserves associated with these properties at the end of 2018 amounted to four trillion cubic feet equivalent. Jeffries and Citi acted as financial advisers to Devon.
The terms were amended in April 2020 to include $570 million in cash at closing and $260 million in contingent payments. The contingent cash payments allow for upside participation above $2.75 Henry Hub natural gas and $50 for West Texas Intermediate crude for four years beginning January 2021. With this change, the closing date was extended to December 2020. In August, the closing was moved forward to October 1st. Devon received a cash payment of $320 million at closing with additional contingent cash payments up to $260 million based on future commodity prices. Upside participation requires $2.75 Henry Hub gas or $50 West Texas Intermediate crude with participation commencing January 1, 2021 and lasting for four years, paid on an annual basis.