Devon Energy buys Grayson Mill Energy's Williston Basin business in $5B cash-and-stock deal

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TX State Wire,North Dakota,SM Energy Co.

Devon Energy is buying Grayson Mill Energy’s Williston Basin business in a cash-and-stock deal valued at $5 billion. The transaction includes $3.25 billion in cash and $1.75 billion in stock. Devon said Monday that the deal significantly expands its position in the Williston Basin with the addition of 307,000 net acres.

FILE - The Devon Energy Tower dwarfs other downtown buildings, Sept. 27, 2021, in Oklahoma City. Devon Energy is buying Grayson Mill Energy’s Williston Basin business in a cash-and-stock deal valued at $5 billion. Devon said Monday, July 8, 2024 that the deal significantly expands its position in the Williston Basin with the addition of 307,000 net acres.

The firm appears to be stepping back from energy sector as it sells off assets. Last month EnCap-backed XCL Resources sold its Uinta Basin oil and gas assets to SM Energy Co. and Northern Oil and Gas in a transaction totaling $2.55 billion. EnCap had another deal in June as well, selling some assets to Matador Resources for nearly $2 billion.

Devon said Monday that the deal significantly expands its position in the Williston Basin with the addition of 307,000 net acres. The basin spans parts of Montana, North Dakota, South Dakota and Canada. The company anticipates that production from the acquired properties will be maintained at approximately 100,000 barrels of oil equivalent per day next year.Dallas Stars will start streaming their regional game broadcasts for free

Devon said its board will expand its buyback authorization by 67% to $5 billion through the middle of 2026. The company also anticipates the deal adding to its dividend payout beginning next year.

 

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