In this episode, Michael Tanner and guest John Farrell from WellDatabase discuss Devon Energy's $5 billion acquisition of Grayson Mill, a deal including significant midstream assets that enhance Devon's position in the Bakken shale. They analyze the strategic value of the three-mile lateral drilling approach, the importance of midstream infrastructure for regulatory compliance and production efficiency, and compare Devon's move to potential acquisitions by other players like Cord Energy. They also speculate on future M&A activities, particularly the possible divestment of Hess’s Bakken assets following developments in Guyana. The episode concludes with a positive assessment of the deal's strategic fit for Devon.

Highlights of the Podcast

01:31 - Overview of Devon Energy's $5 billion acquisition of Grayson Mill, including midstream assets.

02:41 - Previous predictions about Grayson Mill's sale.

06:09 - High-level thoughts on the deal.

08:05 - Breakdown of assets and production numbers.

12:52 - Historical context and strategic acquisitions by Grayson Mill.

23:20 - Analysis of the three-mile lateral strategy and its cost efficiency.

28:28 - Future outlook for three-mile laterals in the Bakken.

31:21 - Importance of midstream assets for production and regulatory compliance.

39:11 - Why Cord Energy didn't acquire Grayson Mill.

43:03 - Speculation on future M&A activity involving Hess and Exxon.

46:01 - Final thoughts and wrap-up.