How do you like your stake, Devon Energy approves 25% stake in Solitude natural gas pipeline

Devon Energy Corporation (DVN) has reached a final investment decision on the Solitude Pipeline System, a WhiteWater-led joint venture that will construct two 48-inch natural gas pipelines connecting the Permian Basin to Katy, Texas.

Devon will hold a 25% equity interest in the joint venture. Other partners include WhiteWater with 50%, MPLX with 10%, Diamondback Energy with 7.5%, and Western Midstream Partners with 7.5%.

The system is designed for an initial capacity of approximately 2.25 billion cubic feet per day, with the first phase entering service in the second half of 2029. A similarly sized second phase is planned for 2030, with the option to expand further based on shipper demand. Construction and in-service timing remain subject to regulatory approvals.

Devon has also secured firm transportation capacity on the system and has initiated agreements for international LNG-linked pricing, including a 100 MMcf per day agreement beginning in 2027 and an additional 150 MMcf per day in 2028.