07:56 AM EDT, 07/08/2024 (MT Newswires) -- (Updates with details in second and third paragraphs.)

Devon Energy ( DVN ) said Monday it has entered into a definitive purchase agreement to acquire Grayson Mill Energy's Williston Basin operations in a deal valued at $5 billion.

The company said it will fund the acquisition with $3.25 billion of cash and 37 million shares of common stock worth $1.75 billion. It also said it will finance the cash portion of the deal through a combination of cash on hand and debt.

Devon said the acquisition is immediately accretive to earnings, cash flow, free cash flow, and net asset value.

Subject to customary terms and conditions, the deal is expected to close by the end of Q3, Devon said.

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