US based oil company Devon Energy has completed its acquisition of Grayson Mill Energy assets in a deal valued at US$5 billion in cash and stock, says GlobalData.
This acquisition significantly enhances Devon's production profile and is expected to contribute to substantial annual cash flow savings.
The deal between the parties was signed in July 2024.
Devon expects the acquisition to bolster its presence in the Williston Basin, adding 307 000 net acres with a 70% working interest.
The newly acquired assets are expected to sustain a production level of around 100 000 boe/d by 2025, with oil constituting 55% of this output.
Devon Energy expects the integration of Grayson Mill Energy's assets to yield up to US$50 million in annual cash flow savings. These savings are projected to arise from operational efficiencies and marketing synergies.
The acquisition also includes 500 gross locations and 300 refrac candidates.
With this acquisition, Devon’s inventory life in the Williston Basin is expected to extend to up to ten years, maintaining a steady development pace with three operated rigs.
On a pro forma basis, following the acquisition, Devon’s oil production is estimated to average 375 000 bpd.
Devon Energy President and CEO Rick Muncrief said: “We are excited to announce the completion of our acquisition of Grayson Mill Energy. This strategic transaction is an excellent fit for Devon, enabling us to efficiently expand our operating scale and production.
“I would like to thank the teams working together for their hard work and look forward to the successful integration.”
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/01102024/devon-energy-acquires-grayson-mills-us-assets-for-us5-billion/