HOUSTON, June 27 -- Devon Energy Corp., Oklahoma City, said Wednesday its board has authorized the repurchase of up to $1 billion in shares of its common stock.
The repurchase program also applies to securities that are convertible into, or otherwise equity-linked to, Devon's common stock.
Under the program, stock will be bought from time to time depending upon market conditions, either in the open market or in privately negotiated transactions. The company has the option to halt the program at any time.
J. Larry Nichols, Devon president, CEO, and chairman, said, "Our first priority is to increase value per share. We believe that at current price levels our shares represent exceptional value. We do not believe that our current trading price reflects the quality of our assets, the strength of our balance sheet, or the visibility of our cash flow and earnings generation capacity. We expect to be an aggressive buyer of our securities."
The company's stock is traded on the American Stock Exchange. Its exchangeable shares, the stock of its wholly-owned Canadian unit Northstar, trade on the Toronto Stock Exchange.
Devon said it ranks among the top five US-based independent producers. About 75% of its reserves are in North America but it also has operations in Azerbaijan, Southeast Asia, South America, and West Africa.