Devon Energy has agreed to sell its Eagle Ford assets to Crescent Energy for $4.2 billion in cash. The sale covers about 68,000 barrels of oil equivalent per day of production. Devon plans to use part of the proceeds to reduce debt.
Devon Energy Corp has agreed to divest its Eagle Ford assets to Crescent Energy Co for $4.2 billion in cash, as part of an ongoing portfolio review.
What the deal covers
The sale involves about 68,000 barrels of oil equivalent per day of production, around 4% of Devon's total production. It also includes approximately 90,000 net acres in the Texan counties of DeWitt, Gonzales and Karnes, according to separate statements by the companies.
Crescent, which is focused on the Eagle Ford and also holds Permian and Uinta basin assets, said the package includes significant Tier 1 inventory in the Karnes Trough. Crescent CEO David Rockecharlie said the purchase of the adjacent assets "solidifies Crescent's world-class Eagle Ford position".
Devon targets debt and buybacks
Devon president and chief executive Clay Gaspar called the sale a direct outcome of the portfolio review. He said selling a relatively mature asset into a strong commodity price environment improves capital efficiency and allows Devon to accelerate share buybacks.
Devon intends to use part of the proceeds to reduce debt. It had $11.4 billion in outstanding debt at the end of the second quarter, against a cash balance of $1 billion and an undrawn credit facility of $3 billion.
Crescent lines up financing
Crescent said it has secured commitments for debt financing options from JPMorgan Chase Bank NA and RBC Capital Markets LLC. It intends to fund the transaction through cash on hand and, as appropriate, a mix of debt and equity.
The parties expect to complete the transaction by yearend or early 2027, Crescent said.
Source: Rigzone
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