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.
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.
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