Devon Energy to Sell Eagle Ford Assets to Crescent Energy for $4.2 Billion

Key numbers

Deal value	$4.2B
Share of market cap	7.8%
Share of annual revenue	24.4%

Key highlights

• Divestiture includes approximately 90,000 net acres in Karnes, DeWitt, and Gonzales Counties
• Total cash consideration of $4.2 billion with an effective date of July 1, 2026
• Assets being sold represent approximately 4% of Devon's total BOE production
• Proceeds will be utilized to accelerate share repurchases and strengthen the balance sheet
• Transaction expected to close in late 2026 or early 2027 pending regulatory approvals

Strategic Asset Divestiture

Devon Energy's exit from the Eagle Ford involves the sale of roughly 90,000 net acres across Karnes, DeWitt, and Gonzales Counties in South Texas. This acreage currently contributes about 4% of the company's total production volume. By monetizing these mature assets into a strong commodity price environment, Devon aims to improve its overall corporate capital efficiency. The deal follows a series of 2025 developments, including the dissolution of a partnership with BPX in the same basin, marking a final pivot away from the region to prioritize higher-return, longer-duration inventory elsewhere in its multi-basin portfolio.

Rationale and Portfolio Impact

• Lengthens average corporate inventory life by removing mature production sites
• Lowers the corporate breakeven price and reduces the base production decline rate
• Provides immediate liquidity to fund a disciplined cash-return business model
• Enables management to focus technical resources on the world-class Delaware Basin acreage
• Improves net asset value per share through an accretive cash valuation

Management Perspective

“This sale is a direct outcome of our ongoing portfolio review, and it sharpens our focus on the highest-return, longest-duration assets. 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.”

Financial Context and Recent Operations

The $4.2 billion cash infusion arrives as Devon Energy continues a period of aggressive portfolio reshaping. In 2026 alone, the company executed a $21.4 billion merger with Coterra Energy and acquired $2.6 billion worth of Delaware Basin acreage through a federal lease sale. With current quarterly revenue at $7.4 billion and a P/E ratio of 10.7x, Devon is repositioning its balance sheet to withstand macro volatility. Beyond share buybacks, the company has recently invested in the Solitude pipeline to integrate gas production from wellhead to market, signaling a shift toward infrastructure-backed margin expansion and long-term value per share.

Up 2.6% since our story on 8 Oct: $48.92 when we broke it → $50.21 at the close on 13 Oct. Daily closing prices. Source: Yahoo Finance.

Show the prices

14 Sep	$49.73
15 Sep	$51.33
16 Sep	$48.44
17 Sep	$48.72
18 Sep	$48.61
21 Sep	$47.59
22 Sep	$46.93
23 Sep	$48.04
24 Sep	$48.90
25 Sep	$47.05
28 Sep	$46.73
29 Sep	$46.60
30 Sep	$46.04
1 Oct	$47.16
2 Oct	$47.65
5 Oct	$47.98
6 Oct	$48.02
7 Oct	$47.88
8 Oct	$48.92
9 Oct	$48.26
12 Oct	$48.96
13 Oct	$50.21

Management commentary

“This transaction is our strategy at work. We acted decisively and countercyclically while navigating a volatile macro environment and received a price above our internal hold case, including potential strategic upside.”

DEVON ENERGY CORP/DE · financial snapshot

Share price	$48.92
Market cap	$53.8B
Revenue (annual)	$17.2B
P/E (TTM)	10.7×
1-month price change	+1.73%
Sector	EnergyOil & Gas E&P

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.