Devon spends $2.6 billion to expand Delaware Basin footprint. Devon Energy said it acquired 16,300 net undeveloped acres in the core of the Delaware Basin in New Mexico for roughly $2.6 billion in a Bureau of Land Management lease sale, marking one of the company's largest recent acreage additions in the Permian Basin. The acreage, located in Lea and Eddy Counties, was purchased for about $161,500 per net acre and is expected to add around 400 net drilling locations normalized to two-mile laterals, according to the company. Devon said the deal enhances its premier position in the Delaware Basin and extends the life of its drilling inventory. The company highlighted several advantages tied to the federal leases, including lower royalty burdens and a high net revenue interest of 87.5%, which it said compares favorably with many state and private leases in the region. Devon also emphasized that the contiguous acreage position would support longer laterals, multi-well pad development, and lower development costs. CEO Clay Gaspar described the lease sale as a "rare and compelling opportunity" to secure large-scale, high-quality acreage in one of the most productive oil regions in North America. He said the acquisition was evaluated based on rock quality, infrastructure access, and shareholder value creation. The announcement comes just weeks after Devon completed its merger with Coterra, a transaction the company said strengthened its understanding of the basin and reinforced confidence in the acquired inventory. The combined company is seeking to consolidate its position in the Delaware, where producers continue competing for top-tier drilling locations amid expectations of sustained U.S. shale output growth. The Delaware Basin, the most prolific oil-producing sub-basin of the Permian, has remained a focal point for consolidation and acreage acquisitions as operators pursue scale, longer laterals, and lower breakeven costs. Federal lease sales in New Mexico have become increasingly competitive due to the limited availability of premium undeveloped acreage. Devon said the acquisition would be funded with cash on hand while maintaining its balance sheet strength and commitment to shareholder returns, including its recently announced $8 billion share repurchase program. By Charles Kennedy for Oilprice.com More Top Reads From Oilprice.com

Devon Energy (“Devon”) (NYSE: DVN) and Coterra Energy (“Coterra”) (NYSE: CTRA) today announced the signing of a definitive agreement to merge in an all-stock transaction. The combination will create a leading large-cap shale operator with a high-quality asset base anchored by a premier position in the economic core of the Delaware Basin. The combined company will be named Devon Energy and will be headquartered in Houston while maintaining a significant presence in Oklahoma City. The formation of this premier company is expected to unlock substantial value by leveraging each company’s core strengths and through the realization of $1 billion in annual pre-tax synergies. The realization of synergies, technology-driven capital efficiency gains and optimized capital allocation will drive near and long-term per share growth. KEY HIGHLIGHTS Transformative merger combines high-quality assets and complementary technical capabilities Creates a scaled, large-cap EP with leading inventory