Grayson Mill Energy

Grayson Mill Energy, LLC operates as a Houston-based exploration and production company with a strategic focus on the acquisition and development of oil and gas assets within key U.S. unconventional resource plays. Founded in October 2016 by Eric Bayes, Blake Sullens, and Matt Ultis, the company secured an initial equity commitment from its management team and EnCap Investments, L.P., a prominent provider of growth capital to the upstream energy sector. Blake Sullens, a founding partner, serves as the Chief Executive Officer, bringing experience from his previous roles in technical evaluation and asset acquisition at Alta Resources, LLC and Hess Corporation.

The company's business model is centered on generating value through disciplined acquisitions of oil and gas properties and enhancing cash flow and net asset value. This returns-focused strategy involves acquiring high-quality rock formations, optimizing operational efficiency, and drilling industry-leading wells. Grayson Mill Energy's primary operations have been concentrated in the Williston Basin, spanning parts of North Dakota and Montana, and previously in Wyoming's Powder River Basin. A significant milestone in its history was the April 2021 acquisition of Equinor's Williston Basin assets for $900 million, which included 242,000 net acres and production of approximately 40,000 barrels of oil equivalent per day (BOEPD). This was followed by another major acquisition from Ovintiv for $825 million, further expanding its footprint and production capabilities. By the third quarter of 2023, the company achieved a record production of 120,000 net BOEPD.

In a transformative event for the company, Devon Energy agreed to acquire Grayson Mill Energy's Williston Basin business in July 2024 for $5 billion in a cash-and-stock transaction. The deal, which was completed in September 2024, significantly expanded Devon's presence in the basin by adding 307,000 net acres. The acquired assets are projected to maintain a production level of about 100,000 BOEPD in 2025. Prior to the acquisition, Grayson Mill had also focused on technological advancements to drive economics, such as utilizing 3-mile laterals in its drilling operations. The company also owns significant midstream infrastructure, including 950 miles of gathering systems, which provides a margin uplift. Following the acquisition by Devon Energy, Grayson Mill Energy now operates as a subsidiary.

Keywords: oil and gas exploration, production, unconventional resources, Williston Basin, Bakken shale, asset acquisition, energy investment, EnCap Investments, upstream sector, Devon Energy acquisition, oil production, natural gas, Houston E&P, drilling operations, petroleum engineering, energy assets, Powder River Basin, midstream infrastructure, corporate development, oil field operations