BY Richard Summerfield
Devon Energy has agreed to sell its Eagle Ford assets to Crescent Energy in a $4.2bn deal, as part of its ongoing portfolio review.
The deal, which carries an effective date of 1 July 2026, and is expected to close near year-end 2026, subject to regulatory approvals and customary closing conditions, will involve about 68,000 barrels of oil equivalent (boe/d) per day of production – around 4 percent of Devon’s total production – and approximately 90,000 net acres in the Texan counties of DeWitt, Gonzales and Karnes, according to separate statements by the companies.
Devon, a Houston, Texas-based Delaware Basin-focused producer, said it intends to use part of the proceeds of the deal to reduce debt. Devon had $11.4bn in outstanding debt as of the end of the second quarter, compared to a cash balance of $1bn and an undrawn credit facility of $3bn. The company has been re-evaluating its portfolio following a $58bn merger with Coterra Energy. Devon is increasingly focused on its core operations in the Permian Basin.
According to Crescent, the acquisition will expand its minerals and royalties business. The deal includes Devon-owned mineral interests that add roughly $50m in royalties earnings before interest, taxes, depreciation and amortisation (EBITDA), while increasing the share of Crescent royalties production operated by the company.
Crescent has been rapidly developing its Eagle Ford position, where the company has completed nine acquisitions since June 2023. Following closing, Crescent expects total production of about 400,000 boe/d, including roughly 170,000 b/d of oil.
“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,” said David Rockecharlie, chief executive of Crescent Energy. “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.”
“This sale is a direct outcome of our ongoing portfolio review, and it sharpens our focus on the highest-return, longest-duration assets,” said Clay Gaspar, president and chief executive of Devon Energy. “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.”
News: Devon sheds Eagle Ford assets for $4.2 billion to deepen Permian bet