AcquisitionsMay 21, 2026, 06:57 AM
Devon Energy Acquires 16,300 Acres in Delaware Basin for $2.6B
AI Summary
Devon Energy Corporation announced the successful acquisition of 16,300 net undeveloped acres in the core of the Delaware Basin in Lea and Eddy Counties, New Mexico, for approximately $2.6 billion. This acquisition, secured through a BLM lease sale, is expected to bolster the company's premier Delaware Basin positions, extend inventory life, and be accretive to net asset value per share. The transaction, valued at approximately $161,500 per net acre, will be funded with cash on hand while maintaining a strong credit profile, aligning with Devon's disciplined cash-return framework.
Key Highlights
- Acquired 16,300 net undeveloped acres in the core of the Delaware Basin.
- Total acquisition cost was approximately $2.6 billion.
- The price per net acre was approximately $161,500.
- The acquisition adds approximately 400 net locations normalized to 2-mile laterals.
- Federal leases carry an 87.5% net revenue interest with 10-year terms.
- Transaction value per location is $6.5 million.
- The acquisition is expected to be funded with cash on hand.
- Company remains committed to its recently announced $8 billion share repurchase program.
Price Impact
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