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Delfin Midstream and Devon Energy Enter into LNG Export Partnership

9/5/2022

Delfin Midstream - Press release

Delfin Midstream Inc and Devon Energy Corporation today announced
that they have entered into a liquefied natural gas (LNG) export partnership that includes an
executed Heads of Agreement for long-term liquefaction capacity and a pre-Financial
Investment Decision (FID) strategic investment by Devon in Delfin.

The HOA provides the framework for finalizing a definitive long-term tolling agreement representing
1.0 million tons per annum (MTPA) of liquefaction capacity in Delfin’s first Floating LNG vessel, with
the ability to add an additional 1.0 MTPA in Delfin’s first or a future Floating LNG vessel. In addition
to providing Devon up to 2.0 MTPA of total liquefaction capacity on a long-term basis, the HOA also
provides opportunity for additional future equity investments in Delfin by Devon. Devon’s 2022
guidance will remain unchanged.
“We are delighted to execute this agreement with Devon, representing a truly strategic partnership
between a U.S. producer and a liquefaction provider,” said Dudley Poston, Delfin CEO. “We believe
our unique liquefaction solution provides significant structural flexibility that allows producers to
maximize the value of their natural gas, while providing a much-needed source of additional supply
to the world LNG marketplace.”
“Our decision to invest in Delfin was the result of a thorough process intended to create additional
pricing diversification for our natural gas portfolio and deliver a sustainable and capital efficient
return for our shareholders,” said Rick Muncrief, Devon’s President and CEO. “Devon has a strong
track record of finding best-in-class midstream and downstream solutions for our production and we
are excited to partner with Delfin to meet the need for safe, clean and reliable energy.”
Following its recent announcement of a binding SPA with Vitol and a HOA with Centrica, this
announcement represents Delfin’s third major agreement in the past two months. Delfin is also in
numerous advanced discussions on additional binding SPAs, HOAs and tolling agreements similar to
those previously announced.
As a modular project requiring only 2.0 to 2.5 MTPA of long-term contracts to begin construction,
and with all necessary permits in hand, Delfin is on schedule to make FID on its first Floating LNG
vessel by the end of this year.
Latham & Watkins LLP is serving as legal advisor to Delfin. Kirkland & Ellis LLP is serving as legal
advisor to Devon.