Devon Energy to Acquire Grayson Mill Energy

Devon Energy, an independent oil & gas company, is set to acquire Grayson Mill Energy's Williston Basin business in a deal worth $5 billion, funded by $3.25 billion in cash and $1.75 billion in stock. The acquisition will add 307,000 net acres with a 70% working interest, maintaining a production level of around 100,000 barrels of oil equivalent per day in 2025. Devon anticipates up to $50 million in annual cash flow savings from operational efficiencies and marketing synergies. This move aims to enhance Devon's oil production, operating scale, and drilling inventory, potentially extending its inventory life in the Williston Basin to up to ten years with three operated rigs. The deal signifies Devon's strategic expansion and financial value creation, addressing past criticisms of missed acquisition opportunities in the shale sector.