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Devon Energy to Buy Grayson Mill’s Williston Assets for $5B

 |  July 10, 2024

Devon Energy has announced its acquisition of Grayson Mill Energy’s Williston Basin business. The deal, valued at $5 billion, includes $3.25 billion in cash and $1.75 billion in stock. This transaction marks another major shift in the industry landscape as companies strive for growth and efficiency.

Grayson Mill Energy, an oil and gas exploration firm based in Houston, has been supported by private equity firm EnCap Investments since 2016. The sale of the Williston Basin assets suggests that EnCap is gradually retreating from the energy sector. This follows a series of asset sales, including EnCap-backed XCL Resources’ recent $2.55 billion transaction of Uinta Basin assets to SM Energy Co. and Northern Oil and Gas, and a nearly $2 billion sale to Matador Resources in June.

Devon Energy, the acquiring company, emphasized that this acquisition significantly strengthens its presence in the Williston Basin, which spans parts of Montana, North Dakota, South Dakota and Canada. The deal adds 307,000 net acres to Devon’s portfolio, positioning the company for enhanced operational leverage in the region.

Devon Energy projects that production from the newly acquired Grayson Mill properties will remain steady at approximately 100,000 barrels of oil equivalent per day through the next year, bolstering its output capabilities.

Source: ABC News