Shares of Devon Energy rose 4.57 percent Monday after the firm announced it was selling upstream assets for $1 billion.
The company said it sold its upstream assets in east Texas for $525 million, as well as its non-core position in the Anadarko Basin's Granite Wash area for $310 million. Devon also sold its overriding royalty across 11,000 net acres in the northern Midland Basin for $139 million.
"Combined with other recent asset sales, we have now announced $1.3 billion of gas-focused upstream divestitures. As we've said previously, proceeds from these tax-efficient transactions will be utilized to further strengthen our investment-grade financial position," said Dave Hager, Devon's president and CEO.
Devon's stock also received a boost from rising oil prices Monday, as U.S. crude gained 2.2 percent to trade near $49.71 a barrel. Oil's gains also boosted the S&P 500's energy sector, which led the benchmark index with a 1.4 percent gain.
In 2016, Devon shares have gained more than 17 percent.
DVN year-to-date chartSource: FactSet