World Oil staff 6/8/2022
(WO) — Devon agreed to acquire the leasehold interest and related assets of RimRock Oil and Gas, a Warburg Pincus portfolio company focused in the Williston Basin, for total cash consideration of $865 million.
“This bolt-on acquisition is highly complementary to our existing position in the Williston Basin and is immediately accretive to our financially-driven strategy,” Rick Muncrief, Devon’s president and CEO, commented in a company release.
The RimRock bolt-on transaction adds a contiguous position of 38,000 net acres (88% working interest) directly offsetting and overlapping Devon’s existing position. RimRock’s first-quarter production was approximately 15,000 boe/d (78% oil), with volumes expected to increase to an average of 20,000 boe/d over the next year, the release said.
RimRock is an independent oil and gas company focused on the acquisition and development of North American oil and gas assets. Since its founding in 2016, RimRock operates nearly 200 wells, including 64 drilled wells and over 130 acquired operating wells. The company has over 38,000 net acres of total land holdings in the Williston Basin.
“RimRock was founded with the mission to apply modern technologies to optimize asset performance as a low-cost operator,” James Fraser, CEO of RimRock, said. “The current commodity environment, combined with our high-performing assets and the support of our strong team, resulted in an incredible business that I am proud to have led. I would also like to thank Warburg Pincus for their partnership over the past 5 years and believe Devon Energy will benefit greatly from ownership of these assets moving forward.”
Wells Fargo served as financial advisor to RimRock in connection with the transaction, and Kirkland & Ellis served as legal advisor.