Devon Energy acquisition of Validus Energy : Devon Energy, an oil and gas producer focused on the Delaware Basin, has signed an all-cash deal worth $1.8 billion to acquire Eagle Ford Shale operator Validus Energy from Pontem Energy Capital and others.

The deal gives the publicly-listed Devon Energy 42,000 net acres of acreage, in which it will have 90% working interest. The acreage to be added to the American oil and gas producer is located adjacent to its present leasehold in the Eagle Ford Shale.

Validus Energy will add about 35,000 barrels of oil equivalent per day (Boed) in production to Devon Energy, with 70% of that being oil. The production is likely to be ramped up over the next year to an average of 40,000Boepd, as per Devon Energy.

Besides, Devon Energy will add Validus Energy’s 350 repeatable drilling locations in the core of the Karnes Trough oil window along with 150 high-quality refrac candidates.

Overall, the acquisition will help Devon Energy take its net acreage to 82,000 net acres in the Eagle Ford Shale, while its oil mix surges from 49% to 60%.

The pro forma production in the Eagle Ford Shale for Devon Energy and Validus Energy in Q2 2022 is 73,000Boed.

Commenting on Devon Energy acquisition of Validus Energy, Rick Muncrief — Devon Energy President and CEO said: “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. 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.”

Devon Energy acquisition of Validus Energy, which is subject to the customary terms and conditions, is likely to close by the end of the third quarter of this year.

Validus Energy will be the second acquisition for Devon Energy in recent times. It follows the $865m acquisition of RimRock Oil and Gas’ Williston Basin assets.

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