Lower 48 giant Devon Energy Corp. is becoming even larger after agreeing to buy Eagle Ford Shale pure-play Validus Energy for $1.8 billion.

devon lower 48 map

The transaction, set for completion by the end of September, would add 42,000 net acres that are adjacent to Devon’s existing leasehold in South Texas. Validus today is producing 35,000 boe/d, 70% weighted to oil, with average volumes set to increase by around 5,000 boe/d by year’s end.

“The Validus acquisition captures a top-tier oil resource with a meaningful runway of highly economic inventory that is complementary to our existing footprint in the Eagle Ford,” CEO Rick Muncrief said.

[Want to know how global LNG demand impacts North American fundamentals? To find out, subscribe to NGI’s Daily Gas Price Index]

The Validus...