Devon Energy will acquire Grayson Mill Energy’s Williston Basin assets for $5 billion — $3.25 billion in cash and $1.75 billion in stock.

Devon’s oil production is estimated to average 375,000 b/d, with total production reaching an average of 765,000 boe/d across its diversified portfolio of assets. The deal adds 307,000 net acres and will sustain production at 100k boe/d in 2025. Operational efficiencies are expected to save up to $50 million annually.

The acquisition includes 500 locations and 300 refrac candidates. Devon will possess an inventory life to 10 years in the Williston Basin. Significant midstream infrastructure will generate over $125 million in EBITDAX annually. Devon’s share-repurchase authorization has increased by 67% to $5 billion through mid-2026, with plans to boost dividends and reduce $2.5 billion of debt over two years.

Closing by Q3 2024, the deal will enhance Devon’s earnings, cash flow, and net asset value. The acquisition, valued at under 4 times EBITDAX, offers a 15% free cash flow yield at $80 WTI.

For more information, visit devonenergy.com.