Oil and gas producer Devon Energy Corp (DVN.N) said on Wednesday it plans to sell its interests in EnLink Midstream to an affiliate of fund manager Global Infrastructure Partners for $3.13 billion in cash.
Devon’s plan to sell interests, which includes its stakes in EnLink Midstream Partners LP (ENLK.N) and EnLink Midstream LLC (ENLC.N), comes at a time when the company is simplifying its asset portfolio and returning cash to shareholders.
The company also increased its share repurchase program by $3 billion, up from its previously announced $1 billion.
The buyback increase is conditional upon closing of the EnLink transaction, the company said in a statement.
Devon said the EnLink sale will reduce its debt by 40 percent. The company’s total long-term debt by the end of 2017 was $10.29 billion, according to the company’s latest annual filing.