Devon Energy repositioned itself as one of America’s premier onshore producers through strategic acquisitions that dramatically expanded operational scale while maintaining capital discipline. That positions the company to capture the highest values in North American energy markets.
A multi-basin strategy spanning the Delaware, Williston, Eagle Ford, Anadarko, and Powder River basins provides unparalleled flexibility to dynamically allocate capital to the highest-return opportunities as commodity prices and market conditions evolve. Unlike single-basin operators vulnerable to regional disruptions or regulatory changes, this operator can shift drilling activity between basins to optimize returns, hedge against localized challenges, and maintain production consistency.
DEVON ENERGY (New York symbol DVN; www.dvn.com) is a leading oil and gas producer in the U.S. with a diversified multi-basin portfolio led by its position in the Delaware Basin.
Devon continues to use acquisitions to expand operations in its core areas. In 2021, it completed its $8.5 billion merger with WPX Energy to create one of the biggest U.S. shale producers. Also in 2021, the company purchased Validus Energy for about $1.8 billion in cash to expand in the Eagle Ford shale area in South Texas. Then, in 2022, Devon acquired the Williston Basin assets of RimRock Oil & Gas, LP. The deal was for $865 million.
Most recently. In October 2024, Devon completed the acquisition of Grayson Mill Energy for $5 billion. That firm is an oil-and-gas producer in the Williston Basin, in western North Dakota and eastern Montana.
Oklahoma City-based Devon paid $3.25 billion in cash and $1.75 billion in stock to acquire Grayson Mill.
Devon reports that the acquisition added immediately to its earnings and cash flow as it expands its position in the Williston Basin by more than 307,000 acres. Production from the acquired acreage was expected to hit about 100,000 barrels of oil a day in 2025. That boosted its output to an average of 765,000 barrels of oil equivalent per day from 664,000 barrels.
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Devon’s Centrica deal unlocks higher prices
Devon has now signed a long-term natural gas sale and purchase agreement (SPA) with Centrica Energy, the trading arm of Centrica.
Centrica is the largest supplier of gas to domestic customers in the U.K., and one of the largest suppliers of electricity, operating under the trading names British Gas in England and Wales, Scottish Gas in Scotland, and Bord Gais Energy in Ireland.
Starting in 2028, Devon Energy will supply Centrica with 50 billion British thermal units per day over a ten-year term, equivalent to approximately five liquefied natural gas (LNG) cargoes annually.
The agreement is strategically designed to mitigate market price risk in Centrica’s LNG portfolio by linking feed gas pricing to the European gas hub price, or Title Transfer Facility (TTF). This arrangement also gives Devon Energy exposure to international pricing.
Notably, the TTF, Europe’s gas benchmark, trades higher than the lower-priced Henry Hub benchmark in the U.S. And with European and Asian gas prices currently trading at about four times U.S. rates, the spreads create strong incentive for U.S. producers to go global.
Centrica Energy’s U.S. business, which recently established a presence in New York, will manage the physical volumes of the deal within the U.S., ensuring efficient handling and optimization of the natural gas supply.
Meanwhile, Devon spent $1.27 billion for share buybacks and dividend payments in 2025. In the long term, it plans to buy back shares in the range of $200 to $300 million per quarter.
The stock currently yields 2.5%.
The company projects capital expenditures of $3.5 billion to $3.7 billion for 2026 to strengthen its operations. It has also been making strategic investments to upgrade and expand assets. A decline in interest rates will also benefit the company.
Recommendation in Power Growth Investor: Devon Energy Corp. is a buy.
