Devon Energy has signed a definitive agreement to divest its Eagle Ford assets to Crescent Energy Company for $4.2bn in cash.
The deal, subject to customary closing adjustments and regulatory approvals, is expected to be completed in the fourth quarter of 2026 (Q4 2026) or early 2027.
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The assets being divested comprise approximately 90,000 net acres across the Texas counties of Karnes, DeWitt and Gonzales, accounting for around 4% of Devon Energy’s total barrels of oil equivalent production.
Crescent Energy said the acquired assets produce approximately 68,000 barrels of oil equivalent per day (boepd) and include more than 600 Tier 1 net locations.
Devon Energy said the transaction is designed to optimise its asset portfolio and improve capital efficiency.
The company added that after-tax proceeds will be used for share repurchases and to reduce outstanding debt.
The deal also represents a move by Devon to lengthen its inventory life and lower its corporate production decline rate.
Devon president and CEO Clay Gaspar said: “This sale is a direct outcome of our ongoing portfolio review, and it sharpens our focus on the highest-return, longest-duration assets.
“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.”
For Crescent Energy, the addition of the Eagle Ford assets is expected to expand its operational footprint in the region, providing assets adjacent to its existing activities.
The company highlighted that the acquisition supports its strategy of focusing on free cash flow, disciplined capital allocation and returns.
Crescent Energy further noted that it has identified around $140m in annual synergies across drilling and completion, lease operating expenses and marketing.
Devon was advised on the transaction by RBC Richardson Barr, with Kirkland & Ellis acting as legal counsel.
Crescent Energy’s financial advisers were Jefferies and JP Morgan Securities, while Latham & Watkins and Vinson & Elkins provided legal advice.
The transaction’s effective date is set for 1 July 2026. Devon plans to provide further updates in its Q3 2026 results, due in early November.
The transaction will be financed through a mix of cash on hand and other financing options, subject to market conditions.
