Devon Energy Sells Eagle Ford Assets to BP for $4.2 Billion
DVN sits 54% above its 52-week low of $31.474.
Summary
Devon Energy has agreed to sell its Eagle Ford assets in South Texas to Crescent Energy for $4.2 billion. The assets consist of approximately 90,000 net acres in Texas and represent about 4% of total BOE production. The sale is a direct outcome of Devon's ongoing portfolio review and follows a September 24 report that BP was evaluating a potential acquisition, but the definitive deal is with Crescent Energy. The sale is a significant divestiture for Devon, representing roughly 8% of its market capitalization, and provides substantial cash proceeds that Devon will use to accelerate stock buybacks and reduce debt. The transaction aligns with activist investor Toms Capital's push for strategic alternatives and is expected to close subject to customary conditions, though no closing date was disclosed.
At the time of this announcement, DVN was trading at $48.42 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $52.7B. The 52-week trading range was $31.47 to $52.71. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.