Devon Energy is acquiring Grayson Mill Energy's Williston Basin operations in a $5 billion cash and stock deal.
Devon Energy is acquiring Grayson Mill Energy's Williston Basin operations in a $5 billion cash-and-stock deal as consolidation accelerates in the oil and gas sector.
The transaction includes $3.25 billion in cash and $1.75 billion in stock.
Houston-based Grayson Mill Energy is an oil and gas exploration company that received its first investment from private equity firm EnCap Investments in 2016.
The asset sale appears to be a move by the company to exit the energy sector. Last month, EnCap-backed XCL Resources sold oil and gas assets in the Uinta Basin to SM Energy Co. and Northern Oil and Gas for a combined total of $2.55 billion. EnCap also completed a separate deal in June, selling some assets to Matador Resources for nearly $2 billion.
Devon said Monday that the deal significantly expands its position in the Williston Basin, which spans parts of Montana, North Dakota, South Dakota and Canada, by adding 307,000 acres.
The company expects production from the acquired assets to remain at about 100,000 barrels of oil equivalent per day next year.
The transaction is expected to close by the end of the third quarter.
Devon said its board of directors will increase its share repurchase authorization by 67% to $5 billion through mid-2026. The company also expects the deal to result in an increase in its dividend starting next year.
Shares of Oklahoma City-based Devon Energy Corp. fell more than 2.5% on Monday.
