Devon Energy has acquired Grayson Mill Energy from EnCap Investments for $5 billion in cash and stock, becoming the fourth-largest producer in the Williston Basin. This acquisition marks Devon’s first significant move in the current consolidation cycle, emphasizing a conservative M&A strategy that values existing production over undeveloped inventory.

Devon Energy (NYSE: DVN) announced today it has entered into a definitive purchase agreement to acquire the Williston Basin business of Grayson Mill Energy in a transaction valued at $5 billion, consisting of $3.25 billion of cash and $1.75 billion of stock to the sellers. The transaction is subject to customary terms and conditions, including various purchase price adjustments, and is expected to close by the end of the third quarter of 2024, with an effective date of June 1, 2024.

The Delaware Basin significantly contributed to Devon Energy’s strong performance in the first quarter of 2024. Delaware Basin led to a 20%+ increase in well productivity year-over-year.

Devon Energy’s 10-K filing reveals a deep concern over the Biden administration’s policies toward oil and gas. The company points out the administration’s push to move away from fossil fuels and impose stricter environmental regulations, foreseeing increased operating costs and potential restrictions on its operations.

Fervo announced its latest round of funding this week to the tune of $244 million. The round was led by Devon Energy, a company that’s previously backed the startup.

US-based energy company Devon Energy intends to keep to its liquids-rich basins and remain as “oily” a producer as possible due to crude’s ability to drive superior margins compared with natural gas, CEO Rick Muncrief said Feb. 28.

Looking ahead to 2024, we have designed a plan to deliver a step-change improvement in capital efficiency. By allocating additional capital to the core of the Delaware Basin and high-grading activity across our diversified portfolio, we expect to efficiently sustain our oil production for roughly 10 percent less capital.

Reports suggest Devon is in talks with Canadian-based Enerplus and made an acquisition offer. Devon declined comment. Enerplus did not immediately respond to a request for a comment reported Reuters.

Devon Energy announced a new partnership with Folds of Honor, a nonprofit dedicated to providing life-changing scholarships to spouses and children of America’s fallen or disabled military and first responders. 

Rick Muncrief and other executives said they are planning 2024 capital spending of $3.3-3.6 billion, a 10% drop from this year’s estimated $3.8 billion. About 70% of those investments will be dedicated to the Delaware basin, where Devon controls about 400,000 net acres.