Devon Energy approves 25% stake in Solitude natural gas pipeline

Devon Energy Corporation (NYSE: 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.

"Solitude is not a standalone investment; it is the next step in an integrated model we have been building for years," said Clay Gaspar, president and CEO of Devon Energy.

The Solitude decision follows a series of infrastructure moves by Devon in the Delaware Basin. The company previously held a founding equity position in the Matterhorn Express pipeline, which it monetized in 2025 while retaining transportation rights. Devon has also secured 550 MMcf per day of firm transportation capacity on the Blackcomb and Eiger pipelines.

Additional infrastructure holdings include a 50% interest in Catalyst Midstream Partners, 100% ownership of Cotton Draw Midstream, and approximately 13% ownership in WaterBridge Infrastructure (NYSE: WBI). Devon also holds 3.4 billion cubic feet per day of operated compression capacity and nearly 1,000 miles of water pipeline in the Delaware Basin.

Devon agreed to supply 115 MMcf per day to CPV's 1,350-megawatt Basin Ranch Energy Center in Ward County, Texas, beginning in 2028, priced against ERCOT West benchmarks.

Kirkland & Ellis LLP served as legal counsel to Devon in connection with the transaction.

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