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July 14 (Reuters) - U.S. oil and natural gas producer Devon Energy Corp (NYSE:DVN) DVN.N said it will sell its 50 percent stake in Access Pipeline in Western Canada to Wolf Midstream Inc, a portfolio company of Canada Pension Plan Investment Board (CPPIB), for $1.1 billion.
The deal is the third in the oil and gas sector in recent weeks involving CPPIB, which has said that it aimed to take advantage of a fall in asset valuations due to a prolonged crude price slump. plans to shed its non-core assets to strengthen its balance sheet after the worst oil price crash in a generation.
"With the highly accretive sale of Access, Devon's divestiture program is now complete with proceeds totaling $3.2 billion, surpassing the top end of our $2 billion to $3 billion guidance range," Chief Executive Dave Hager said. proceeds from the transaction will accelerate the company's investment in U.S. shale plays, including the Stack Basin in Oklahoma and Delaware Basin, Hager said on Thursday.
Devon will also be eligible for C$150 million ($116 million) after the sanctioning and development of a new thermal-oil project in Alberta. ($1 = 1.2917 Canadian dollars)