Devon sells Eagle Ford assets to Crescent for $4.2 billion to deepen Permian bet
DVN•Devon Energy will sell its Eagle Ford assets to Crescent Energy for $4.2 billion, with the deal expected to close by year-end. The assets include about 90,000 net acres and nearly 68,000 barrels of oil equivalent per day of net production.
1. Sale details
Devon said the sale sharpens its focus on core operations in the Permian Basin following its $58 billion merger with Coterra Energy. The Eagle Ford assets in South Texas account for roughly 4% of Devon’s total oil-equivalent production. CEO Clay Gaspar said the sale would allow Devon to accelerate share buybacks, strengthen its balance sheet and increase long-term shareholder value.
2. Crescent’s plans
Crescent expects nearly $100 million in annual synergies from the assets. CEO David Rockecharlie said the company expects to maintain activity at about the same level and deliver effectively the same production with less capital. An analyst said the deal could create a near-term funding overhang, while describing the acquisition as potentially accretive if Crescent integrates the assets, realizes synergies and deleverages.
