E&P - Quick Take - The Bids Are In; DVN a Big Winner

Research evidence excerpt

E&P - Quick Take - The Bids Are In; DVN a Big Winner

Truist Securities

Equity Research Report May 20, 2026

ENERGY: Energy Exploration &

Production E&P - Quick Take - The Bids Are In; DVN a

Big Winner

Following up from our previous note this morning, results from today's NM lease sale Gabe Daoud highlights Devon Energy (DVN, Buy) as the highest bidder, with $2.6Bn in total spend

212-303-4193

Gabe.Daoud@truist.com for 16.3k acres. Assuming a 1,280 DSU size, and 20 wells per section, this implies

~255 new locations at ~$10.3MM/location. Federal abstract was the second-highest

bidder, who we believe could be Matador Resources (MTDR, Buy), acquiring 5.2k Frankie DiGiovanna acres for $1.1Bn. Under the same inventory assumptions this implies ~81 new locations 212-326-3158

Francis.DiGiovanna@truist.com at $14.2MM/location. Further, this highlights our $12MM/location assumption for TRP

Energy as being largely in-line with the current market.

Eric Look

212-303-4174 DVN disclosed as the highest bidder in NM Lease Sale. Earlier today, there was a

Eric.Look@truist.com lease sale from BLM in New Mexico, which included ~33.5k acreage (92% from Lea

and Eddy counties in the Delaware Basin). The entire lease sale went for ~$4.06Bn in

5 Page Document total with DVN spending ~$2.63Bn for almost half of the available land for sale, ~16.3k

acreage - implying ~$161.5k/acre. An anonymous buyer (using Federal Abstract to

remain unknown) was the other large purchaser of the day, spending ~$1.14Bn for ~5.2k

Reasons for this report acreage (~$221.7k/acre). Recall back in 2018, MTDR used Federal Abstract to remain

anonymous as they purchased ~8.4k acres for ~$387MM (~$46k/acre) in a prior BLM

✓ Quick Reaction to Newsflow/Volatility New Mexico lease sale.