Learn more about Hart Energy Conferences
Get our latest conference schedules, updates and insights straight to your inbox.
Devon Energy Corp. completed the acquisition of Eagle Ford operator Validus Energy for $1.8 billion cash, the company announced in a press statement on Sept. 28.
Previously announced on Aug. 9, the acquisition will include 42,000 net acres in the Eagle Ford shale with a 90% working interest. The acquired assets currently yield 35,000 boe/d and are anticipated to increase production to approximately 40,000 boe/d over the next year.
RELATED
Devon Energy Doubles its Eagle Ford Footprint in $1.8 Billion Deal
Effective June 1, 2022, the bolt-on will bring Devon's total acreage in the Eagle Ford to 82,000 net acres while increasing its expected annual production to 73,000 boe/d.
In addition, the position adds 350 repeatable drilling locations and 150 high-quality refrac candidates within the Karnes Trough, allowing Devon to sustain its free cash flow generation high-margin production for several years, according to the company.
“The Validus acquisition captures a top-tier oil resource with a meaningful runway of highly economic inventory that is complementary to our existing footprint in the Eagle Ford," president and CEO Rick Muncrief said in an August press announcement. "This accretive transaction also enhances our financially-driven strategy that is designed to deliver per-share financial growth and accelerate the return of capital to our shareholders.”
The Validus acquisition marks Devon's second completed transaction since July, with its $865 million cash Williston Basin bolt-on acquisition of RimRock Oil and Gas LP closing on July 21.
Recommended Reading
Petrie Partners: A Small Wonder
2024-02-01 - Petrie Partners may not be the biggest or flashiest investment bank on the block, but after over two decades, its executives have been around the block more than most.
CEO: Coterra ‘Deeply Curious’ on M&A Amid E&P Consolidation Wave
2024-02-26 - Coterra Energy has yet to get in on the large-scale M&A wave sweeping across the Lower 48—but CEO Tom Jorden said Coterra is keeping an eye on acquisition opportunities.
Hess Corp. Boosts Bakken Output, Drilling Ahead of Chevron Merger
2024-01-31 - Hess Corp. increased its drilling activity and output from the Bakken play of North Dakota during the fourth quarter, the E&P reported in its latest earnings.
Exxon, Chevron Tapping Permian for Output Growth in ‘24
2024-02-02 - Exxon Mobil and Chevron plan to tap West Texas and New Mexico for oil and gas production growth in 2024, the U.S. majors reported in their latest earnings.
Covia Holdings to Separate Energy, Industrial Businesses
2024-01-17 - Covia Energy will be a leading pure-play sand company serving the energy industry, providing proppant and logistical solutions to E&Ps and oilfield service companies in major basins across North America.