Devon Energy Buys Grayson Mill Energy in Latest Oil Patch Deal

Devon Energy (DVN) connected Monday announced that it has purchased privately held Grayson Mill Energy for $5.0 cardinal successful rate and banal to grow its operations successful nan Williston Basin, situated successful nan Dakotas, Montana, and parts of Canada.

Devon said it will salary $3.25 cardinal successful rate and $1.75 cardinal successful shares for Grayson Mill, which is backed by private equity patient EnCap Investments, an power assemblage investor.

Devon noted that nan move “significantly expands nan company’s position successful nan Williston Basin,” by adding 307,000 nett acres pinch 70% moving interest. It pointed retired that accumulation is expected to beryllium maintained astatine astir 100,000 barrels of lipid balanced (BOE) successful 2025, pinch 55% of that being oil.

Chief Executive Officer (CEO) Rick Muncrief explained that nan woody “allows america to efficiently grow our lipid accumulation and operating standard while capturing a meaningful runway of highly economical drilling inventory.”

Devon Says Deal 'Immediately Accretive'

The institution added that nan transaction will beryllium “immediately accretive to Devon’s cardinal per-share financial measures, including earnings, cash flow, free rate flow and nett plus value.”

Devon said that because of nan free rate travel benefits of nan acquisition, nan committee has accrued its stock buyback programme by 67% to $5 cardinal done mid-year 2026. 

The woody is nan latest successful a drawstring of caller multibillion-dollar power institution mergers, including APA (APA)-Callon, Chevron (CVX)-Hess (HES), and ConocoPhillips (COP)-Marathon Oil (MRO).

Shares of Devon Energy fell almost 3% to $45.73 arsenic of 10:45 a.m. ET Monday. They’re fundamentally level truthful acold successful 2024.