Devon Energy buys Delaware Basin acreage for $2.6 billion
Devon acquired 16,300 acres in the Delaware Basin for $2.6 billion via a federal lease. The deal follows its recent $58 billion merger with Coterra Energy.
Devon Energy Corp acquired 16,300 net undeveloped acres in the Delaware Basin for $2.6 billion through a federal lease. The deal expands the company's footprint in the premier U.S. shale play following its $58 billion merger with Coterra Energy Inc. Investors are weighing the high cost of inventory replenishment against the long-term drilling potential of the New Mexico acreage.
### High Price Tag for Permian Inventory The transaction adds approximately 400 net drilling locations, implying a cost of $6.5 million per location. Devon shares fell 2.5% as analysts questioned the acquisition cost. TPH & Co analyst Matt Portillo said in a research note that while the company needs to bolster inventory, investors will be surprised by the sticker price.
