Devon Energy Completes Acquisition of Williston Basin Bolt-On

Rhea-AI Summary

Devon Energy Corp. (NYSE: DVN) has completed its acquisition of RimRock Oil and Gas, LP's leasehold interests in the Williston Basin for $865 million, excluding adjustments. This deal includes 38,000 net acres, enhancing Devon's existing holdings. The acquired assets are expected to produce an average of 20,000 Boe per day over the next year and add over 100 undrilled inventory locations, which will contribute to high-margin production and robust cash flow for several years.

Positive

• Acquisition enhances Devon's position with an additional 38,000 net acres (88% working interest).
• Expected production increase to 20,000 Boe per day over the next year.
• Adds over 100 high-potential undrilled locations, supporting future revenue growth.

Negative

• Risk that acquired assets may not perform as expected, impacting production and financial returns.

OKLAHOMA CITY, July 21, 2022 (GLOBE NEWSWIRE) -- Devon Energy Corp. (NYSE: DVN) today announced that it has completed its previously announced acquisition of the leasehold interest and related assets of RimRock Oil and Gas, LP in the Williston Basin for a total cash consideration of $865 million, less purchase price adjustments.

This acquisition adds a contiguous position of 38,000 net acres (88% working interest) directly offsetting and overlapping Devon’s existing position. Production from the acquired assets is expected to increase to an average of 20,000 Boe per day over the next year. The transaction also adds more than 100 highly economic undrilled inventory locations, positioning the company’s Williston Basin assets to maintain high-margin production and strong cash flow for several years.

ABOUT DEVON ENERGY

Devon Energy is a leading oil and gas producer in the U.S. with a premier multi-basin portfolio headlined by a world-class acreage position in the Delaware Basin. Devon’s disciplined cash-return business model is designed to achieve strong returns, generate free cash flow and return capital to shareholders, while focusing on safe and sustainable operations. For more information, please visit www.devonenergy.com.

Investor Contacts	Media Contact
Scott Coody, 405-552-4735	Lisa Adams, 405-228-1732
Chris Carr, 405-228-2496

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the federal securities laws. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company. These risks include, but are not limited to: the risk that the acquired assets do not perform consistent with our expectations, including with respect to future production or drilling inventory; and the other risks identified in the Company’s 2021 Annual Report on Form 10-K and its other filings with the Securities and Exchange Commission (SEC). Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. The forward-looking statements in this press release are made as of the date hereof, and the company does not undertake any obligation to update the forward-looking statements as a result of new information, future events or otherwise.

FAQ

What was the acquisition amount for RimRock Oil and Gas by Devon Energy?

Devon Energy acquired RimRock Oil and Gas for $865 million, excluding purchase price adjustments.

How many acres did Devon Energy acquire in the Williston Basin?

Devon Energy acquired a total of 38,000 net acres with an 88% working interest.

What is the expected production from the acquired assets?

The acquired assets are expected to produce an average of 20,000 Boe per day over the next year.

What strategic advantages does this acquisition provide Devon Energy?

This acquisition increases Devon's undrilled inventory by over 100 locations, enabling sustained high-margin production and cash flow.

What are the risks associated with the acquisition of RimRock Oil and Gas?

The primary risk is that the acquired assets may not perform as projected, potentially affecting future production and financial results.