Devon to Buy Williston Basin Oil Assets in $5 Billion Deal

Deal Is Latest in String of Mergers in US Oil Patch
pump jacks in Bakken
A pumpjack operates as a drill rig sits on a well pad in the Bakken Formation in Williston, N.D. (Daniel Acker/Bloomberg)

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Devon Energy Corp. agreed to acquire the Williston Basin business of Grayson Mill Energy for $5 billion as consolidation continues in the U.S. oil patch.

Devon will pay $3.25 billion in cash and $1.75 billion in stock for the assets in the Bakken region in North Dakota and Montana, the company said in a statement July 8. Devon plans to finance the first portion with cash on hand and debt. The deal is expected to close by the end of the third quarter.

The deal will significantly expand Oklahoma City-based Devon’s operations in the Williston Basin, giving it access to an additional 300,000 acres. The company expects production from that land to reach about 100,000 barrels of oil per day in 2025.

The deal is the latest in a string of mergers in the U.S. oil patch as shale basins age and companies push to line up future drilling sites so they keep funding dividends and share buybacks.

Devon expects the Grayson Mill deal to boost its earnings enough that the board increased its share repurchase authorization by 67%, to $5 billion through midyear 2026, according to the statement. Devon plans to update its 2024 guidance after the deal closes.

The company’s shares fell 0.5% before the start of regular trading in New York.

Citigroup was Devon’s financial adviser, and Kirkland & Ellis LLP was its legal adviser.

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