Devon Energy Acquires Delaware Basin Acreage

Devon Energy Corporation has announced the acquisition of 16,300 net undeveloped acres in the Delaware Basin, located in Lea and Eddy Counties, New Mexico. The purchase was made through the Bureau of Land Management Oil and Gas Lease Sale for approximately $2.6 billion, equating to about $161,500 per net acre. This strategic acquisition is expected to enhance Devon's existing positions in the Delaware Basin, extend its inventory life, and be accretive to its net asset value per share. The acquired acreage is characterized by high net revenue interest (87.5%) on federal leases with 10-year terms, contiguous positioning for longer laterals and cost efficiencies, top-tier well productivity, and the ability to leverage existing infrastructure. The company plans to fund the transaction with cash on hand while maintaining its strong credit profile and commitment to its cash-return framework, including an $8 billion share repurchase program. This move is consistent with Devon's strategy of expanding its premium acreage in core operating areas.