Devon Energy Corporation (DVN) Boosts Delaware Basin Position with $2.6B Acquisition

Devon Energy Corporation (NYSE: DVN ) is one of the best oil stocks to buy now amid the US-Iran Conflict . On May 21, Devon Energy Corporation (NYSE:DVN) completed the acquisition of 16,300 net undeveloped acres through a U.S. government federal lease sale in the core of the Delaware Basin in Lea and Eddy Counties.

The $2.6 billion sale is poised to bolster the company’s Delaware Basin positions and further extend inventory life. Devon Energy Corporation is to fund the acquisition with cash on hand while maintaining a strong credit profile.

The deal will add 400 net locations, normalized to 2-mile laterals, with strong well economics expected. The new position will also result in high net revenue interest, given that Federal leases carry 87.5% net revenue interest with 19-year terms across all depths.

The acquisition comes on the heels of the company announcing a series of capital return actions following the completion of all stock mergers with Coterra Energy. The board has already approved an $8 billion share repurchase representing 15% of the current market capitalization. It has also approved a $ 0.320-per-share dividend, a 33% quarter-over-quarter increase.

Devon Energy Corporation (NYSE:DVN) is an independent oil and gas company that explores for, develops, and produces crude oil, natural gas, and natural gas liquids. Operating entirely within the United States, its primary assets are concentrated in major resource basins, with a significant footprint in the prolific Delaware Basin.

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