Devon Energy agrees to sell Eagle Ford assets for $4.2 billion in cash
The assets cover about 90,000 net acres in South Texas, and proceeds will fund share buybacks and debt reduction.
Key takeaways
- Devon Energy Corp. (DVN) agreed on Oct. 8 to sell its Eagle Ford assets to Crescent Energy for $4.2 billion in cash, subject to adjustments. The assets cover about 90,000 net acres and 4% of Devon's total BOE production. Proceeds will fund buybacks and debt reduction. Closing is expected in the fourth quarter of 2026 or early 2027.
Devon Energy Corporation (DVN) agreed to sell its Eagle Ford assets in South Texas to Crescent Energy for $4.2 billion in cash, the company said in a press release and a regulatory filing on Thursday.
The sale is part of the company's ongoing portfolio review, according to the filing.
The seller is Devon Energy Production Company, L.P., a wholly owned subsidiary of the company. The buyer is Crescent (Eagle Ford) LLC, a wholly owned subsidiary of Crescent Energy Company. Crescent Energy Finance LLC also joins the agreement for certain limited purposes.
The assets cover about 90,000 net acres in Karnes, DeWitt and Gonzales counties, Texas. They represent about 4% of Devon's total production, measured in BOE, or barrels of oil equivalent.
“This sale is a direct outcome of our ongoing portfolio review, and it sharpens our focus on the highest-return, longest-duration assets,” said President and Chief Executive Officer Clay Gaspar.
The company said the $4.2 billion price fully reflects the value of its Eagle Ford production and inventory. It also said the sale is accretive on a per-share basis to free cash flow and net asset value.
Gaspar said the company “received a price above our internal hold case, including potential strategic upside.”
The price is subject to customary closing adjustments. The filing also says certain revenues and expenses will be allocated based on a July 1, 2026 effective date.
After-tax proceeds will be used to accelerate share repurchases and to strengthen the balance sheet through debt reduction. The filing does not give a buyback amount or a debt-reduction target.
Gaspar tied the sale to other moves in 2026. He cited the combination with Coterra, the addition of Delaware Basin inventory in a federal lease sale, and investment in the Solitude pipeline, which he said will integrate the company's gas production “from wellhead to market.”
The filing gives an effective date of July 1, 2026, and expects the sale to close in the fourth quarter of 2026 or early 2027. The press release says closing is expected around year-end 2026.
Closing depends on the expiration or termination of any applicable Hart-Scott-Rodino waiting period and other customary conditions.
The company said it will provide more details, including the impact on its outlook, with third-quarter 2026 results on Nov. 5, 2026. A conference call and webcast will follow on Nov. 6.
RBC Richardson Barr is exclusive financial advisor to Devon, and Kirkland & Ellis LLP is its legal advisor.
The filing does not give a multiple of cash flow or a price per acre for the assets.