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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
Pipes carry recovered bitumen from Devon Energy's Jackfish Projects processing plant, Alberta, Canada.

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