Devon Energy Corp. has entered into a definitive agreement to acquire the Williston basin assets of Grayson Mill Energy, marking a significant expansion of its oil and gas portfolio.
The transaction, valued at $5 billion, solidifies Devon’s commitment to growth in the U.S. energy sector.
Transaction Details and Financial Structure
The acquisition will be structured as a combination of cash and stock, with Devon paying $3.25 billion in cash and $1.75 billion in stock. The company plans to finance the cash component through a combination of existing cash reserves and debt. The deal is expected to be finalized by the end of the third quarter.
Strategic Fit and Growth Potential
Rick Muncrief, Chief Executive Officer of Devon Energy, highlighted the strategic importance of the acquisition, stating, “The integration of Grayson Mill’s assets aligns perfectly with Devon’s strategic goals, enabling us to efficiently increase our oil production capacity and operational scale while securing a substantial pipeline of economically viable drilling inventory.”
Industry Consolidation Trend
This acquisition exemplifies the ongoing trend of consolidation in the U.S. oil and gas industry. Executives are actively seeking opportunities to bolster their portfolios with promising drilling sites and enhance cash flow generation.