Devon Energy acquires Grayson Mill Energy’s Williston Basin business

Devon Energy has announced its agreement to acquire the Williston Basin business of Grayson Mill Energy in a transaction valued at $5 billion, consisting of $3.25 billion in cash and $1.75 billion in stock to the sellers.

The transaction expands the company’s position in the Williston Basin with the addition of 307,000 net acres (70% working interest). The acquisition also adds 500 gross locations and 300 high-quality refrac candidates. On a pro forma basis, Devon will possess an inventory life of up to 10 years in the Williston Basin at a constant development pace of three operated rigs.

Pro forma for the transaction, the company estimates its oil production to average 375,000 bboe per day, with total production reaching an average of 765,000 bboe per day across its diversified portfolio of assets.