Devon, Matador boost Delaware basin positions in $3.7-billion BLM lease haul

Devon Energy Corp. and Matador Resources Co. expanded their Delaware basin footprints in the Bureau of Land Management's May 20 oil and gas lease sale, collectively acquiring nearly $3.7 billion in acreage in the core of the Permian play.

Devon acquired 16,300 net undeveloped acres across 24 parcels in Lea and Eddy Counties, NM, for $2.6 billion, while Matador secured 5,154 net undeveloped acres in southeast New Mexico for $1.14 billion. Both operators emphasized the strategic value of acreage directly adjacent to their existing positions.

"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 said the acquisition adds about 400 net locations normalized to 2-mile laterals and extends inventory life while supporting longer laterals, co-development, and multi-well pad development to reduce costs. The federal leases carry an 87.5% net revenue interest and 10-year terms across all depths—more favorable than typical state and fee leases in the region, the company said.

Matador's acreage, which lends itself to extended reach laterals of 3 miles or more, adds over 141 net operated locations normalized to 2-mile laterals. The operator said the acquisition extends the company's inventory and reserve base while enhancing operating efficiencies through multi-well developments and emerging horizons.

"The southeast New Mexico acreage is highly complimentary to Matador's current acreage position," said Joseph Wm. Foran, Matador's founder, chairman, and chief executive officer.

Ahead of the sale, Devon held about 746,000 net acres in the Delaware basin across southeast New Mexico and west Texas, where development activities cross the Wolfcamp shale and Bone Spring and Avalon intervals in Culberson, Reeves, Loving, Eddy, and Lea Counties and others. 

Matador held 212,500 net acres as of Dec. 31, 2025.

Strong competition drives $4 billion in bids

The Bureau of Land Management leased 74 parcels totaling 33,530 acres in New Mexico and Texas in the quarterly sale. Combined bonus bids and rental payments totaled about $4 billion. A total of 98 registered bidders participated in the sale, with 61 unique, financially vetted bidders placing 1,072 bids. The highest per-parcel bid reached $405.76 million, according to Efficient Markets, the digital marketplace that partnered with BLM to facilitate the sale.

The sale was conducted under the Working Families Tax Cuts Act, which lowered the federal royalty rate for new onshore oil and gas production to 12.5% from 16.67% set under the Inflation Reduction Act.