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Devon Energy rises amid $1B asset sale, gains in oil prices

Pipes carry recovered bitumen from Devon Energy's Jackfish Projects processing plant, Alberta, Canada.
Jimmy Jeong | Bloomberg | Getty Images

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 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 chart

Source: FactSet