- Devon Energy (DVN +2.4%) and Dow Inc. (DOW -0.1%) announce plans to jointly develop some of DVN's STACK acreage in Oklahoma, starting next year with the development of two drilling units in northern Canadian County.
- Under the JV agreement, DVN says it will monetize half of its working interest in 133 undrilled locations in exchange for a ~$100M drilling carry over the next four years.
- DVN, who will serve as operator of the JV, says it will retain 100% of its production and cash flow from existing operations in the STACK play.
- The agreement is a "mild positive but not a significant needle-mover," says Capital One analyst Phillips Johnston, adding that the move is not a total surprise as DVN had signaled previously it was looking into JV opportunities in the STACK play.