Devon Energy has agreed to sell its Eagle Ford assets in Texas to Crescent Energy Company for $4.2 billion in cash, subject to customary closing adjustments.

The assets cover approximately 90,000 net acres across Karnes, DeWitt and Gonzales counties, representing around 4 per cent of Devon’s total production.

The transaction has an effective date of July 1, 2026, and is expected to close around year-end, subject to regulatory approvals and customary closing conditions.

The divestiture forms part of Devon’s portfolio optimisation strategy, aimed at prioritising higher-return, longer-duration assets and improving capital efficiency. 

The sale is expected to extend inventory life, lower the company’s corporate breakeven and reduce its base production decline rate.

Devon plans to use the after-tax proceeds to accelerate share repurchases and reduce debt, strengthening its balance sheet and supporting shareholder returns.

 The company said the agreed valuation reflects the assets’ production and inventory value and is accretive to free cash flow and net asset value per share.