Devon to Sell Eagle Ford Assets for $4.2B

Devon Energy Corp. (DVN) has entered into a definitive agreement to sell its Eagle Ford assets to Crescent Energy Company (CRGY) for total consideration of $4.2 billion in cash, subject to customary closing adjustments. The agreement, announced on October 8, 2026, advances a planned reshaping of Devon’s asset base while providing a significant cash inflow to the company.

The transaction has an effective date of July 1, 2026 and is expected to close around year-end 2026. Completion remains subject to regulatory approvals and other customary closing conditions that must be satisfied before the assets formally change hands.

The assets being sold comprise approximately 90,000 net acres in Karnes, DeWitt and Gonzales Counties in Texas. These properties are part of the Eagle Ford shale play and form a discrete portion of Devon’s broader portfolio of oil and gas holdings.

Devon stated that the Eagle Ford position to be divested represents about 4% of its total barrels-of-oil-equivalent production. By shedding a relatively small share of its current output, the company is aiming to refocus on other assets while still preserving the bulk of its production base.

Devon characterized the transaction as a portfolio high-grading that monetizes the Eagle Ford assets at an attractive valuation and enhances financial flexibility. The company indicated that the move is designed to improve capital efficiency across its remaining asset base.

Following the divestiture, Devon expects its inventory life to be lengthened, its go-forward corporate breakeven to be lowered and its corporate base production decline rate to be reduced. These changes align with the company’s stated objective of strengthening the quality and resilience of its portfolio.

Devon plans to deploy after-tax proceeds from the $4.2 billion cash consideration to accelerate share repurchases and to strengthen its balance sheet through debt reduction. This capital allocation approach links the asset sale directly to shareholder returns and leverage management.

RBC Richardson Barr is serving as Devon’s exclusive financial advisor on the transaction, while Kirkland & Ellis LLP is acting as legal advisor. These advisors are supporting the company through the transaction process as it moves toward targeted closing around the end of 2026.