Devon Energy to Sell Eagle Ford Assets to Crescent Energy for 4.2 Billion Dollars
Devon Energy Corporation (DVN) is divesting its Eagle Ford operations in south Texas to Crescent Energy Company (CRGY) in an all-cash transaction valued at $4.2 billion. This divestment covers roughly 90,000 net acres spanning Karnes, DeWitt, and Gonzales counties, representing about 4% of Devon's total oil-equivalent output. Following the announcement, Devon's stock traded higher while Crescent's shares saw a decline.
This divestment aligns with a broader strategy to concentrate on long-term assets that yield higher returns. Devon intends to allocate the remaining funds after taxes toward paying off outstanding debt and speeding up its stock buyback initiatives. Additionally, the move is projected to lower future corporate breakeven costs and slow down the company's underlying production decline. The agreement is backdated to July 1, 2026, and is projected to wrap up by the end of the year, depending on regulatory clearance and standard closing terms.
The asset sale follows another major transaction earlier in the year, when Devon finalized an all-stock merger with Coterra Energy in May 2026 to form a combined business valued at roughly $58 billion. Looking forward, Devon is scheduled to release its financial results for the third quarter of 2026 on November 5, 2026.
Key points
- Devon Energy Corporation (DVN) agreed to sell its Eagle Ford acreage to Crescent Energy Company (CRGY) in a cash deal worth $4.2 billion.
- The sale covers approximately 90,000 net acres in Texas, which currently account for about 4% of Devon's total oil-equivalent output.
- Proceeds from the divestment, net of taxes, will be used to pay off debt and ramp up stock buybacks.
- The transaction is retroactively dated to July 1, 2026, and is anticipated to finalize by the close of 2026.
- The company will publish its third-quarter financial results on November 5, 2026.
Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org
How we writeDisclaimerQuestions and answers
What are the terms of the Devon Energy and Crescent Energy deal?
Devon Energy Corporation (DVN) is divesting its Eagle Ford holdings in Texas to Crescent Energy Company (CRGY) for $4.2 billion in cash. The parties aim to finalize the transaction by the close of 2026, pending regulatory approval.
How will Devon Energy use the proceeds from the Eagle Ford asset sale?
The company intends to direct the after-tax cash proceeds from the sale toward paying down outstanding debt and expanding its stock repurchase program.
When does Devon Energy report its next quarterly earnings?
Devon is scheduled to announce its third-quarter financial results on November 5, 2026.