This has created a favorable environment for firms like EnCap to cash out on assets. In June, the private equity firm sold some shale assets of XCL Resources for about $2 billion.
Reuters reported in January that the firm planned to sell Grayson Mill, a major Bakken-focused energy producer in North Dakota, Montana, and the Powder River Basin in Wyoming.
Monday’s deal, expected to close by the end of the third quarter, will add up to 10 years of inventory life with 500 additional wells, primarily in the Bakken, contributing 307,000 net acres to Devon’s Williston Basin position.
Devon expects its output to grow to 765,000 barrels of oil equivalent per day (boepd) from 664,000 boepd.
“A more conservative outlook on deals may have prevented Devon from coming out on top in the various scrambles for core Permian opportunities,” said Andrew Dittmar, principal analyst at Enverus.
“The Eagle Ford and MidContinent now stand out as some of the least consolidated plays with the most remaining private opportunities.”
Devon’s board of directors also expects to expand its share repurchase by 67% to $5 billion through mid-year 2026, while the acquisition is expected to add to the company’s dividend payout starting 2025.