Devon Energy wraps up $1.8bn acquisition of Validus Energy
Devon Energy Corp. has wrapped up its previously announced $1.8 billion acquisition of Eagle Ford operator Validus Energy from Pontem Energy Capital and others.
The all-cash deal was announced in August 2022. (Read more about Devon Energy acquisition of Validus Energy here)
Through the deal, Devon Energy, which has a multi-basin portfolio, added an acreage position of 42,000 net acres located near its existing leasehold in the Eagle Ford shale.
According to Devon Energy, the acquired assets have current production of around 35,000 barrels of oil equivalent (Boe) per day. Over the next year, this is likely to be ramped up to an average of 40,000 Boe per day.
The acquisition of Validus Energy also gives 350 repeatable drilling sites to Validus Energy in the core of the Karnes Trough oil window in addition to 150 refrac candidates.
Devon Energy stated: “This highly economic inventory positions the company’s Eagle Ford assets to sustain its high-margin production and free cash flow generation for several years.”