Devon Energy Corp. 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, stroking supply concerns.
Devon said it expects to incur about $100 million in capital expenditures in 2022 after closing the deal.