Devon to buy RimRock's Williston basin assets for $865 mln (updated)
08/06/2022 21:32
(Adds background, deal details)
June 8 (Reuters) - Devon Energy Corp DVN.N said on
Wednesday it would acquire the leasehold interest and related
assets of RimRock Oil and Gas LP in the Williston Basin in North
Dakota for $865 million.
RimRock is a portfolio company of funds managed by U.S.
private equity powerhouse Warburg Pincus and is focused on the
acquisition and development of North American oil and gas
assets.
RimRock has over 38,000 net acres of total land holdings in
the Williston Basin.
Devon said it intends to approve a 13% increase to the fixed
quarterly dividend following the closing of the deal, expected
in the third quarter.
Crude prices have rallied to multi-year highs on the back of
economic sanctions against Russia following its invasion of
Ukraine, stoking supply concerns.
Devon said it expects to incur about $100 million in capital
expenditures in 2022 after closing of the deal.
(Reporting by Rithika Krishna in Bengaluru; Editing by Maju
Samuel)
((Rithika.Krishna@thomsonreuters.com; Twitter: https://twitter.com/rithika_krishna;))