Devon Energy (NYSE: DVN) has agreed to sell its Eagle Ford assets in South Texas to Crescent Energy (NYSE: CRGY) for $4.2 billion in cash, marking a major reshuffling of U.S. shale assets as Devon sharpens its focus on the Delaware Basin.
The transaction covers approximately 90,000 net acres across Karnes, DeWitt and Gonzales counties, representing around 4% of Devon’s total oil and gas production. Devon plans to use the after-tax proceeds to accelerate share repurchases and reduce debt.
According to Crescent’s transaction presentation, the acquired assets produce approximately 68,000 barrels of oil equivalent per day, with oil accounting for 55%–60% of production. The acquisition also adds more than 600 high-quality net drilling locations to Crescent’s inventory.
Crescent estimates the net purchase price at approximately $3.85 billion after anticipated adjustments, compared with the $4.2 billion headline price announced by Devon.
The buyer expects to generate $140 million in annual operational and commercial improvements, including $100 million from drilling and completion optimization and another $40 million from operating efficiencies and marketing. These benefits remain company projections rather than realized savings.
The acquisition will significantly expand Crescent’s existing Eagle Ford footprint, positioning it as the basin’s second-largest oil producer, according to the company’s estimates. Crescent expects its combined production to reach approximately 400,000 boe/d following the transaction.
For Devon, the divestiture follows its merger with Coterra Energy earlier this year and supports its strategy of concentrating investment in longer-life, higher-return assets.
The deal is expected to close in late 2026 or early 2027, subject to customary approvals and closing conditions.
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Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
