Crescent to Buy Devon Eagle Ford Assets for $3.85 Billion
The deal adds about 68 Mboe/d of net production and more than 600 Tier 1 net locations, with closing expected in late 2026 or early 2027.
Crescent Energy Company (CRGY) entered a definitive agreement to buy Eagle Ford assets from Devon Energy for an estimated net purchase price of about $3.85 billion. The transaction, which the company said would add Tier 1 inventory directly beside its existing operations, is expected to close in the fourth quarter of 2026 or early 2027.
The acquired assets include approximately 68 Mboe/d of net production and more than 600 Tier 1 net locations normalized to 10,000 feet, concentrated in the Karnes Trough. The package is oil-weighted. Crescent already owns minerals across the acquired assets and nearby operations, and the Devon-owned minerals would add scale and operatorship to Crescent Royalties. The company described the deal as accretive across CFFO, FCF and NAV, with about $140 million in annual synergies identified across drilling and completion, lease operating expense and marketing.
Chief Executive Officer David Rockecharlie said the acquisition “represents a significant step forward for Crescent, adding high-quality assets at an attractive valuation in the heart of one of our core operating areas.” He said the company knows the assets through longstanding minerals ownership and nearby operations and sees “meaningful opportunity to make them even better.”
Crescent, which focuses on the Eagle Ford, Permian and Uinta basins and on minerals and royalty interests, has obtained debt-financing commitments from JPMorgan Chase Bank, N.A. and RBC Capital Markets, with KKR Capital Markets advising. It intends to fund the purchase with cash on hand and, as appropriate, a mix of debt and equity. Jefferies and J.P. Morgan Securities were financial advisors; Latham & Watkins and Vinson & Elkins were counsel.
The deal follows a second quarter in which Crescent posted record cash generation and then raised its 2026 production and cost outlook. Second-quarter production averaged 335 MBoe/d, about 42% oil and 64% liquids, including 140 MBo/d of oil. Adjusted EBITDAX reached a record $798 million, operating cash flow a record $707 million and levered free cash flow a record $418 million. Net income was $494 million and adjusted net income $263 million.
Operating expense was $13.38/Boe and adjusted operating expense excluding production and other taxes was $10.95/Boe, about 9% below the prior 2026 guidance midpoint. The company drilled 43 gross operated wells and brought online 32, spending $284 million of capital excluding acquisitions.
Relative to its February outlook, Crescent lifted the 2026 total-production range to 327–335 MBoe/d, cut adjusted operating-expense guidance to $11.00–$12.00/Boe and production taxes to 5.0%–6.0% of commodity revenue, and left development capital at $1,325–$1,425 million. It raised the Permian synergy target to about $250 million to $300 million, roughly three times the original, with about $190 million captured to date.
The company redeemed the remaining $259 million of senior notes due 2029, keeping about $2.0 billion of pro forma liquidity and no near-term maturities after a first-quarter $690 million convertible offering that called $500 million of 9.25% notes due 2028. It declared a $0.12-a-share quarterly dividend.
Crescent will run the Devon assets under the same free-cash-flow and capital-allocation discipline it applies to its current portfolio, and the Karnes Trough locations will compete for capital immediately. Closing remains subject to customary conditions, including financing on terms the company finds satisfactory.