Devon Energy Expands Williston Footprint With $5B Grayson Mill Deal

Devon Energy is deepening its foothold in the Williston Basin with a cash-and-stock acquisition from Grayson Mill Energy valued at $5 billion.

Consideration includes $3.25 billion in cash and $1.75 billion in Devon equity to the sellers, Oklahoma City-based Devon announced before markets opened July 8.

"The acquisition of Grayson Mill is an excellent strategic fit for Devon that allows us to efficiently expand our oil production and operating scale while capturing a meaningful runway of highly economic drilling inventory," said Devon President and CEO Rick Muncrief.

"This transaction also creates immediate value within our financial framework by delivering sustainable accretion to earnings and free cash flow that will result in higher distributions to shareholders over time,” he said.

The acquisition from Grayson Mill Energy, backed by Houston-based private equity firm EnCap Investments LP, will expand Devon’s Williston Basin position with an additional 307,000 net acres (70% working interest).

Grayson Mill’s production is estimated to average around 100,000 boe/d (55% oil) in 2025.

On a pro forma basis, Devon’s company-wide oil production will average 375,000 bbl/d; total pro forma production will average approximately 765,000 boe/d.

Devon said that Grayson Mill’s “peer-leading” operating margins in the North Dakota Williston Basin benefit from midstream infrastructure ownership in 950 miles of gathering systems, crude storage terminals and disposal wells.

Grayson Mill’s midstream ownership will create a margin uplift of over $125 million in annual EBITDAX and gives the company options to capture multiple end use markets and higher pricing.

In conjunction with the Grayson Mill acquisition, Devon’s board of directors expanded the company’s share repurchase authorization by 67% to $5 billion through mid-year 2026.

Devon expects the deal to be accretive to its dividend payout in 2025 and beyond.

With the U.S. upstream E&P sector awash in corporate M&A, analysts and industry veterans wondered when—and where—Devon Energy might make a deal.

Devon reportedly looked at opportunities to expand its Permian Basin footprints through deals with Endeavor Energy Resources and CrownRock LP.

Endeavor was later acquired by Diamondback Energy for $26 billion; CrownRock by Occidental Petroleum for $12 billion. Both deals are still pending.

But the Williston Basin has attracted a notable volume of upstream dealmaking of its own. Chord Energy closed a $4 billion acquisition of Enerplus Corp. in late May, creating a top Williston oil and gas producer.

TXO Partners LP, led by former XTO Energy executive Bob Simpson, recently announced entering the Williston Basin through acquisition.

TXO Partners’ two Williston transactions—one with Eagle Mountain Energy Partners and the other with an undisclosed private seller—will deliver assets in the Elm Coulee field of Montana and the Russian Creek field of North Dakota.

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