(Updates headline and story to add additional information from the Devon Energy press release throughout.)
Devon Energy (DVN) acquired 16,300 net undeveloped acres in the Delaware Basin in New Mexico for about $2.6 billion through a Bureau of Land Management oil and gas lease sale, the company said Thursday, accounting for more than half of the roughly $4 billion generated from the sale.
The Bureau of Land Management said it leased 74 parcels amounting to 33,530 acres during the quarterly lease sale, with combined bonus bids and rental payments totaling roughly $4.01 billion.
Devon Energy secured 25 parcels with total bonus bids worth $2.5 billion, according to a Reuters report, citing sale results posted on a government website.
The company said the federal leases carry an 87.5% net revenue interest and 10-year terms across all depths, which it said are more favorable than typical state and fee lease terms in the region.
Devon Energy said it expects to fund the transaction with cash on hand while maintaining its credit profile.