A major oil company in the United States, Devon Energy, has finalized its purchase of Grayson Mill Energy’s assets in a deal worth a staggering $5 billion in cash and stock. This strategic acquisition is expected to significantly boost Devon’s production capacity and lead to substantial annual cost savings. The agreement between the two parties was signed in July 2024.
The acquisition will substantially enhance Devon’s presence in the Williston Basin, adding a massive 307,000 net acres with a 70% working interest. The newly acquired assets are projected to maintain a production level of approximately 100,000 barrels of oil equivalent per day (boepd) by 2025, with oil making up 55% of this output.
Devon Energy anticipates that the integration of Grayson Mill Energy’s assets will result in up to $50 million in annual cost savings, achieved through operational efficiencies and marketing synergies. The deal also includes 500 gross locations and 300 refrac candidates. As a result, Devon’s inventory life in the Williston Basin is expected to extend to up to ten years, allowing the company to maintain a steady development pace with three operated rigs.
On a pro forma basis, Devon’s oil production is estimated to average 375,000 barrels per day following the acquisition. Devon Energy’s president and CEO, Rick Muncrief, expressed his excitement about the completion of the acquisition, stating that it is an excellent fit for the company, enabling it to efficiently expand its operating scale and production. He also thanked the teams involved for their hard work and looked forward to a successful integration.
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