Devon Energy (DVN) is keeping its house clean, buying only what can benefit all stakeholders and shedding anything else that weighs it down.
The company recently announced that it is shutting down its office in Houston and transferring operational responsibilities for assets in South Texas, East Texas, and Louisiana to Oklahoma City. The company expects to relocate a number of employees from Houston to Oklahoma City, completing the entire move by the end of the first-quarter 2013. This move is expected to save the company $80 million annually, with the cost reductions materializing through both lower general and administrative expenses and reduced capitalized personnel costs. Devon will be neighbors with Chesapeake Energy (CHK) and Marathon Petroleum (MPC). Chesapeake is currently striking it big in theHogshooter play in the Texas Panhandle.
Chesapeake owns approximately 30,000 net acres there and recently announced that an exploratory well had produced an average of approximately 7,350 barrels of oil equivalent per day during its first eight days of stabilized production. Marathon recently announced that it haspartnered with partner Harvest Pipeline Company to set up a truck-to-barge system on the Ohio River. This newly constructed facility will be utilized for the transportation of oil and natural gas liquids produced in the Utica shale oil play to refineries. The project will have trucks with daily capacity to transport about 24,000 barrels and a terminal that can load up to 50,000 barrels of oil daily. To continue reading, click here.