Devon Energy announced on 8 October that it has reached an agreement with Crescent Energy to sell its Eagle Ford position for $4.2 billion. The transaction will transfer approximately 90,000 net acres and nearly 4% of Devon’s total production portfolio.
“This sale is a direct outcome of our ongoing portfolio review, and it sharpens our focus on the highest-return, longest-duration assets,” Clay Gaspar, CEO of Devon, said in the announcement. “Over the past several years, we have leveraged technology to lower costs and increase productivity while coring up our Eagle Ford acreage footprint, and the attractive price agreed to reflects both the quality of the assets and that work. Selling a relatively mature asset into a strong commodity price environment improves our go-forward capital efficiency and allows us to accelerate share buybacks, strengthen our balance sheet, and increase long-term value for shareholders.”
According to Crescent, the acquisition includes approximately 68,000 BOE/D of current production and roughly 600 net Tier 1 drilling locations. The assets are directly adjacent to Crescent’s existing position in the South Texas play. Prior to the transaction, the company expected to exit the year with average production of nearly 331,000 BOE/D across its Eagle Ford, Permian Basin, and Uinta Basin assets.
“This acquisition represents a significant step forward for Crescent, adding high-quality assets at an attractive valuation in the heart of one of our core operating areas,” David Rockecharlie, CEO of Crescent Energy, said in a release. “We know these assets exceptionally well through our longstanding minerals ownership and nearby operations, and see meaningful opportunity to make them even better. The transaction solidifies Crescent’s world-class Eagle Ford position and creates significant additional value creation opportunities through our proven operating strategy.”
Crescent plans to fund the acquisition with cash on hand but said it may also use debt financing and equity issuance.
The company expects the transaction to generate approximately $140 million in annual synergies. The deal is expected to close in the fourth quarter of 2026 or early 2027 and is subject to customary closing conditions.