Devon acquires US shale assets in $5-billion deal

USA

OKLAHOMA CITY, July 9, 2024 – US oil and gas producer Devon Energy has entered into a definitive purchase agreement to acquire the Williston Basin business of Grayson Mill Energy, Devon announced on Monday.

The transaction is valued at USD 5 billion and will be funded with USD 3.25 billion in cash and the issue of 37 million shares of common stock valued at USD 1.75 billion. Final close is expected by the end of Q3 2024.

With the acquisition, Devon adds 307,000 net acres in the Williston Basin, which straddles the US states of Montana, North Dakota and South Dakota, and the Saskatchewan and Manitoba provinces in Canada. Devon expects to maintain production from the acquired properties at 100,000 boepd in 2025, with oil accounting for around 55% of the output.

The added production will bring Devon’s oil output to an average of 375,000 bopd, with total production reaching an average of 765,000 boepd across its portfolio. The acquired business also brings midstream infrastructure of more than 1,500 kilometres of gathering systems, a network of disposal wells and crude storage terminals.

“The acquisition of Grayson Mill is an excellent strategic fit for Devon that allows us to efficiently expand our oil production and operating scale while capturing a meaningful runway of highly economic drilling inventory,” said Rick Muncrief, Devon’s president and CEO.