Devon Energy Announces Bolt-On –


OKLAHOMA CITY, June 08, 2022 (GLOBE NEWSWIRE) — Devon Energy Corp. (:DVN) today announced that it has entered into a definitive purchase agreement to acquire the leasehold interest and related assets of RimRock Oil and Gas, LP, a Warburg Pincus holding company, in the Williston Basin for a total cash consideration of $865 million. The transaction is subject to customary terms and conditions and is expected to close in the third quarter of 2022, with an effective date of April 1, 2022.

“This add-on acquisition is highly complementary to our existing position in the Williston Basin and is immediately accretive to our finance-focused strategy,” said Rick Muncrief, President and CEO. “RimRock’s directly adjacent square footage provides strong operational synergies, adds to our high-quality inventory at the heart of the game, and positions us to further increase cash return to shareholders.”


  • Immediately accretive to financial metrics – The transaction, attractively valued at 2.2x cash flow with a free cash flow yield of over 25% at the strip price over the next year, is expected to be immediately accretive to all relevant metrics by stock in the first year, including earnings, cash flow, free cash flow and net asset value.
  • Increases return of capital to shareholders – Due to the free cash flow accretive nature of this transaction, Devon’s Board of Directors intends to approve a 13% increase in the fixed quarterly dividend following the closing of the transaction. The company also expects this transaction to be accretive to the payment of the variable dividend in 2022 and beyond.
  • Maintains a leading balance sheet – Devon’s pro forma leverage metrics will remain relatively unchanged, ranking among the lowest in the industry, preserving the company’s financial and operational flexibility and enabling an accelerated return of capital to shareholders.
  • Improves the quality and scale of Williston Basin assets – This transaction adds a contiguous position of 38,000 net acres (88% working interest) offsetting and directly overlapping Devon’s existing position. RimRock’s first quarter production was approximately 15,000 boe per day (78% oil), with volumes expected to increase to an average of 20,000 boe per day over the next year. Devon estimates that approximately $100 million of capital expenditures will be incurred post-closing in 2022. The transaction also adds more than 100 highly economic undrilled inventory sites, positioning the company’s Williston Basin assets to maintain production. with high margins and strong cash flow for several years.

Additional slides covering the transaction are available on the Company’s website at


Devon Energy is a leading oil and gas producer in the United States with a leading multi-basin portfolio, highlighted 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

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


This press release contains forward-looking statements within the meaning of the federal securities laws. These statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the company’s control. These risks include, but are not limited to: delay or failure to complete the transaction due to unsatisfied closing or other conditions; the final amount of cash consideration payable in connection with the transaction due to purchase price adjustments or otherwise; changes in commodity prices, market conditions or other circumstances that could adversely impact the Company’s ability to declare and pay an increased dividend; and 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 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 contained in this press release are made as of the date hereof, and the Company undertakes no obligation to update any forward-looking statements as a result of new information, future events or otherwise.



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