Devon Energy Corporation (NYSE: DVN) acquired 16,300 net undeveloped acres in the Delaware Basin through a Bureau of Land Management oil and gas lease sale for approximately $2.6 billion, or $161,500 per net acre.

The acreage is located in the core of the Delaware Basin in Lea and Eddy Counties, New Mexico. The acquisition adds approximately 400 net locations normalized to 2-mile laterals, according to the company.

The federal leases carry an 87.5% net revenue interest with 10-year terms across all depths. Devon stated this is more favorable than net revenue interests typical of state and fee leases in the region.

The acquired acreage is contiguous and directly adjacent to Devon's existing Delaware Basin position. The company said this provides the ability to drill longer laterals and utilize existing facilities and infrastructure.

"This BLM lease sale presented a rare and compelling opportunity to add high-quality, contiguous federal acreage at scale in the core of the Delaware Basin," said Clay Gaspar, Devon's President and Chief Executive Officer.

Devon plans to fund the $2.6 billion transaction with cash on hand. The company said it remains committed to its disciplined cash-return framework, including its $8 billion share repurchase program.

The acquisition comes two weeks after Devon completed its merger with Coterra Energy. Gaspar noted that the combined understanding of the basin following the merger reinforced the company's conviction in the quality of this inventory.

Devon Energy is an oil and gas producer with operations in multiple U.S. basins including the Anadarko Basin, Eagle Ford, Marcellus Shale, Powder River Basin, and Williston Basin, anchored by its Delaware Basin position.