Deals
Devon Inks $1.8 Billion Shale Deal to Expand in Eagle Ford
Richard Muncrief, president and chief executive officer of Devon Energy Corp., speaks virtually during a House Energy and Commerce Subcommittee in Washington, D.C., U.S., on Wednesday, April 6, 2022.
Photographer: Al Drago/BloombergThis article is for subscribers only.
Devon Energy Corp. agreed to acquire Validus Energy for about $1.8 billion in cash to expand in the Eagle Ford shale patch in South Texas.
The deal will add to Devon’s cash flow and earnings in the first year, and boost its variable dividend by up to 10% based on current oil futures prices, the company said Tuesday in a statement. Devon also said the transaction will enable the acceleration of the return of cash to investors via its existing $2 billion stock buyback program. The shares rose as much as 1.6% in premarket trading.