Devon Energy Completes Acquisition of Grayson Mill Energy
Devon Energy Corp. (NYSE: DVN) has successfully finalized its acquisition of Grayson Mill Energy, marking a significant milestone for the company. The transaction is valued at $5 billion, which sets the stage for an enhanced operational footprint in the Williston Basin.
Significance of the Acquisition
This strategic acquisition adds a considerable high-margin production mix, further solidifying Devon's position as a top player in the oil and gas sector. The addition of 307,000 net acres significantly transforms Devon's existing operations in the Williston Basin, which is known for its prolific oil production.
Operational Advantages of New Assets
With Grayson Mill Energy now part of the Devon portfolio, the company gains 500 undrilled gross locations and 300 high-quality refrac candidates. These assets are expected to enhance productivity and ensure Devon leverages the full potential of its resources, thereby increasing its operational efficiency.
Leadership Insights and Future Plans
Rick Muncrief, Devon's president and CEO, expressed enthusiasm regarding the acquisition. "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," Muncrief remarked. He also appreciated the efforts of the teams involved in the acquisition and looks forward to a smooth integration process.
Routing to Enhanced Production Outlook
Devon Energy plans to provide more insights regarding its production and capital expenditure outlook during its third-quarter earnings materials. The updates will be shared on November 5, focusing on how recent acquisitions and strategies are influencing the company’s growth trajectory.
About Devon Energy
Devon Energy stands out as a leader in the U.S. oil and gas production sector. The company boasts a premier multi-basin portfolio, highlighted by its substantial acreage in the Delaware Basin. Devon has a disciplined cash-return business model aimed at achieving robust returns, generating free cash flow, and returning capital to shareholders while emphasizing safe and sustainable practices.
Investor and Media Contacts
For any inquiries regarding the acquisition or company information, interested parties can connect with:
Investor Contacts
Rosy Zuklic: 405-552-7802
Chris Carr: 405-228-2496
Media Contact
Michelle Hindmarch: 405-552-7460
Frequently Asked Questions
What did Devon Energy acquire?
Devon Energy acquired Grayson Mill Energy for $5 billion including significant high-margin production assets.
How will this acquisition impact Devon's production?
The acquisition is expected to significantly enhance Devon's production capabilities with new high-quality resources and locations.
When will Devon provide updates on its capital outlook?
Devon plans to share updates on its production and capital outlook in its third-quarter earnings materials on November 5.
What does the acquisition add to Devon's portfolio?
It adds 307,000 net acres, along with numerous undrilled locations and refrac candidates, enhancing operational capacity.
Who is the CEO of Devon Energy?
Rick Muncrief is the president and CEO of Devon Energy, leading the company through this strategic acquisition.
