Devon Energy Drills Down On Growth: $5B Deal Expands Williston Basin Presence
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 08 2024
0mins
Should l Buy DVN?
Source: Benzinga
- Acquisition Deal: Devon Energy Corporation is acquiring Grayson Mill Energy’s Williston Basin business for $5 billion, with $3.25 billion in cash and $1.75 billion in stock.
- Deal Details: The acquisition includes 500 gross locations, 300 refrac candidates, and is expected to close by the end of the third quarter of 2024.
- Financial Impact: The transaction is projected to be immediately accretive to Devon’s key financial metrics like earnings, cash flow, and net asset value.
- Production Outlook: Post-deal closure, Devon expects oil production to reach 375,000 barrels per day and total production to average 765,000 barrels of oil equivalent daily.
- Future Plans: Devon aims to reduce debt, increase share repurchase authorization, enhance dividends, and report second-quarter results on August 6, 2024.
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Analyst Views on DVN
Wall Street analysts forecast DVN stock price to rise
20 Analyst Rating
18 Buy
2 Hold
0 Sell
Strong Buy
Current: 45.250
Low
41.00
Averages
45.53
High
55.00
Current: 45.250
Low
41.00
Averages
45.53
High
55.00
About DVN
Devon Energy Corporation is an oil and gas producer in the United States with a diversified multi-basin portfolio headlined by an acreage position in the Delaware Basin. The Company is primarily engaged in the exploration, development and production of oil, natural gas and natural gas liquids (NGLs). It owns a portfolio of assets located in the Delaware Basin, Rockies, Eagle Ford and Anadarko Basin. The Delaware Basin operates in southeast New Mexico and across the state line into west Texas. It offers exploration and development opportunities from many geologic reservoirs and play types, including the oil-rich Wolfcamp, Bone Spring, Avalon and Delaware formations. Its Rockies development consists of its Williston Basin and Powder River Basin assets. The Eagle Ford operations are located in Texas' DeWitt and Karnes counties. The Anadarko Basin development is located in western Oklahoma. It has a joint venture with Dow to develop a portion of its Anadarko Basin acreage.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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