Devon Energy (NYSE:DVN) has agreed to purchase Grayson Mill Energy's Williston Basin business for a total of $5 billion.

The deal, announced on Monday, includes $3.25 billion in cash and $1.75 billion in Devon Energy stock.

The acquisition will substantially enhance Devon's footprint in the Williston Basin, adding approximately 307,000 net acres across Montana, North Dakota, South Dakota, and parts of Canada.

Devon Energy projects that the newly acquired properties will sustain a production level of around 100,000 barrels of oil equivalent per day in the following year.

Completion of this transaction is expected by the end of the third quarter.