Devon Energy Corporation's board of directors has approved a plan to form a publicly traded midstream master limited partnership (MLP).
The MLP, which is expected to initially own a minority interest in Devon's United States midstream business, includes natural gas gathering and processing assets located in Texas, Oklahoma and Wyoming.
Devon plans to file a registration statement with the regulatory agency in the third quarter of 2013. The company will own the general partner of the MLP, a majority of its common units, and all incentive distribution rights. Devon will utilize the proceeds from the sale of MLP common units to fund its continuing operations, the press release stated.
The energy company last month confirmed a $1.3 billion dollar loss in its first-quarter 2013 earnings which stemmed from lower oil and natural gas liquids prices. Devon's loss equaled to $3.34 per share, reported Reuters. The company's oil and natural gas output fell 1 percent from last year to 687,000 barrels of oil equivalent per day.