BP Eyes Devon's Eagle Ford Asset in $3.5B-$4.5B Deal
DVN sits 57% above its 52-week low of $31.474.
Summary
BP is evaluating a potential acquisition of Devon Energy's Eagle Ford asset in South Texas, with sources indicating a valuation range of $3.5 billion to $4.5 billion. Devon is marketing both its Eagle Ford and Powder River basin acreage as part of a portfolio review following its $58 billion merger with Coterra Energy. The Eagle Ford asset spans roughly 90,000 net acres and produced about 77,000 boepd in Q2. This development follows activist pressure from TOMS Capital and Kimmeridge Energy Management urging Devon to shed assets and improve performance. A deal would provide Devon with significant cash to fund its $8 billion buyback and reduce debt, while BP would expand its US shale footprint near existing operations. Watch for formal bids or a definitive agreement, though sources caution that entering a data room does not guarantee a purchase.
At the time of this announcement, DVN was trading at $49.50 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $54.5B. The 52-week trading range was $31.47 to $52.71. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.