BP explored deal for Devon’s Eagle Ford asset, sources say
BP•BP studied a possible purchase of Devon Energy’s Eagle Ford operations but walked away, one source said. Analysts valued the asset at about $4.5 billion, while sources estimated $3.5 billion to roughly $4 billion.
1. BP considered asset purchase
BP entered the data room for Devon Energy’s Eagle Ford asset, which opened in late August, but decided against a deal after studying its merits, one source said. Sources cautioned that entering a data room does not guarantee a formal bid.
2. Asset value estimates differ
TPH Research analysts valued Devon’s Eagle Ford asset at about $4.5 billion, while sources estimated its value at $3.5 billion to roughly $4 billion. The asset spans around 90,000 net acres and produced about 77,000 barrels of oil equivalent per day in the second quarter.
3. Devon is marketing acreage
Devon is also marketing its Powder River basin acreage as part of a portfolio review following its merger with Coterra Energy. BP said strengthening its balance sheet and maintaining capital discipline remain priorities.
