Devon Energy’s $79 million acquisition of federal oil and gas leases in New Mexico’s Eddy County marks a defining moment for the Permian Basin as the industry enters 2026. With bids reaching an unprecedented $218,751 per acre, the record-setting sale signals not only the enduring value of top-tier shale acreage, but also how recent changes in federal royalty policy are reshaping investment strategies across U.S. oil and gas. In one of North America’s most prolific producing counties, Devon’s move underscores a broader shift toward securing long-life, capital-efficient inventory in the core of the Permian Basin.
Here’s what Devon Energy’s Eddy County land grab really means for the Permian going into 2026 — and why this is one of the most important upstream signals we’ve seen since the Exxon-Pioneer deal.
Devon just paid Tier-1 rock prices
Devon didn’t just “participate” — it reset the price of Permian inventory.
Lease Acres $/Acre Total Core block 320 $218,751 $70.0M Add-on 458 $6,522 $3.0M High-grade bolt-on 160 $39,001 $6.2M Total 938 — $79.2M
That $218k per acre number is not random.
It is the price buyers pay for multi-bench, stacked pay in:
• Wolfcamp A/B
• Bone Spring 1st–3rd
• With existing takeaway, water and power
This is DrillCo-grade inventory — the kind majors use to underpin 10–15 years of capital-efficient growth.
Why Eddy County is now the battleground
Eddy County is no longer just “good Permian.”
It has quietly become the most valuable shale real estate in North America.
Let’s frame it:
• 25,000+ wells drilled
• #3 oil-producing county in the U.S.
• 1.7 million bpd from Eddy + Lea alone
• 29% of all Permian output from two counties
This is not exploration anymore — this is manufacturing.
Devon just paid what private equity and majors normally pay in Guyana-quality offshore oil, except this is onshore shale with 60-day payout wells.
Why Devon is doing this now
This wasn’t about acreage.
This was about locking in future cash flow under a new fiscal regime.
The One Big Beautiful Bill Act reset federal royalties:
Before Now 16.67% 12.5%
That is a 25% reduction in government take.
For Devon, that means:
• +$5–8/bbl in netbacks
• +10–15% IRR uplift
• More inventory qualifies for development
They just bought federal land that now behaves like private acreage.
This is why bids exploded.
This changes how the Permian will develop
What Devon did signals three things:
1️⃣ The Permian still has scarce Tier-1 rock
People talk about shale maturity — yet Devon just proved the best rock is getting more valuable, not less.
2️⃣ M&A is not dead — it moved upstream
Instead of buying companies, operators are buying the dirt directly.
You’ll see:
• Lease auctions heat up
• Permian royalty interests spike
• More federal acreage chased
3️⃣ Eddy County becomes a capital magnet
Every OFS company should be watching this.
Where Devon drills, the following surge:
• Power demand
• Water & recycling
• Sand, chemicals, completion crews
• Gas takeaway and electrification
This acreage will be factory-drilled for the next decade.
The bigger macro signal
While markets debate EVs, AI power and energy transition narratives…
The real capital just spoke:
$218,751 per acre says U.S. shale is still the world’s best energy business.
Not marginal.
Not declining.
Scarce and strategic.
Devon Energy’s $79 million acquisition of federal oil and gas leases in New Mexico’s Eddy County marks a defining moment for the Permian Basin as the industry enters 2026. With bids reaching an unprecedented $218,751 per acre, the record-setting sale signals not only the enduring value of top-tier shale acreage, but also how recent changes in federal royalty policy are reshaping investment strategies across U.S. oil and gas. In one of North America’s most prolific producing counties, Devon’s move underscores a broader shift toward securing long-life, capital-efficient inventory in the core of the Permian Basin.
