Crescent Energy to Acquire Devon Energy’s Eagle Ford Assets for $3.85 Billion
Crescent Energy Company (NYSE: CRGY) has entered into a definitive agreement to acquire Eagle Ford assets from Devon Energy for an estimated net purchase price of approximately $3.85 billion. The transaction is expected to strengthen Crescent’s position in the Eagle Ford Basin by adding high-quality drilling inventory, expanding its operating footprint, and increasing its scale in a core area of its business. The acquisition is expected to close in the fourth quarter of 2026 or early 2027, subject to customary closing conditions.
The transaction represents a significant expansion of Crescent’s existing operations in South Texas. The acquired properties are located directly adjacent to Crescent’s current assets, providing opportunities to integrate operations, improve development efficiency and capture additional value. Crescent intends to manage the assets in line with its established strategy, which prioritizes free cash flow generation, disciplined capital allocation and attractive investment returns.
The assets being acquired are expected to contribute approximately 68,000 barrels of oil equivalent per day (Mboe/d) of net production. They also include more than 600 Tier 1 net drilling locations, normalized to 10,000-foot lateral lengths. This inventory is expected to provide Crescent with additional development opportunities and greater flexibility in allocating capital across its portfolio.
Crescent’s existing minerals ownership throughout the acquired properties, combined with its nearby operating presence and extensive technical knowledge of the basin, gives the company a strong understanding of the assets. This familiarity is expected to support the integration process and help identify opportunities to improve operational performance and long-term financial results.
Strengthening Crescent’s Eagle Ford Position
A central objective of the acquisition is to consolidate Crescent’s position in the Eagle Ford, one of its core operating regions. The acquired assets contain substantial Tier 1 inventory in the Karnes Trough, an area that can compete directly for capital within Crescent’s development portfolio.
By bringing these properties together with its existing operations, Crescent expects to establish a larger, more integrated position across the basin. The geographic proximity of the assets could support coordinated drilling programs, more efficient infrastructure utilization and improved operational planning. The expanded footprint also builds on Crescent’s established operating and minerals presence, reinforcing its competitive position in the region.
The additional drilling inventory is expected to give Crescent greater flexibility in determining where to deploy capital. The company can evaluate development opportunities across a broader asset base while maintaining its focus on investment returns and cash flow generation. This approach is intended to support consistent financial performance while preserving the ability to respond to changing commodity prices and market conditions.
Expected Financial Returns and Accretion
Crescent expects the transaction to deliver attractive investment returns consistent with its established underwriting criteria. The company anticipates meaningful accretion across several important financial measures, including cash flow from operations (CFFO), free cash flow (FCF) and net asset value (NAV).
The acquisition is also expected to improve the quality of Crescent’s inventory and enhance capital efficiency. Access to additional high-quality drilling locations could allow the company to allocate development spending more effectively, while the expanded operating footprint may create opportunities to reduce costs and improve margins.
Crescent has identified approximately $140 million in annual synergies across drilling and completions (D&C), lease operating expenses (LOE) and marketing. These anticipated savings represent an important component of the transaction’s expected value creation. By applying its established operating practices to the acquired properties, Crescent aims to improve performance and increase the cash flow generated by the assets.
The company’s strategy of acquiring assets and improving their performance is central to its approach. Crescent plans to use its technical expertise, operational experience and knowledge of the Eagle Ford to identify efficiencies throughout the combined portfolio. The realization of the identified synergies will depend on integration execution and operating conditions.
Expanding Crescent Royalties
The transaction is also expected to strengthen Crescent’s minerals and royalties business. The Devon-owned mineral interests included in the acquisition will expand Crescent Royalties by increasing its scale, enhancing development visibility and broadening its exposure to activity across the acquired properties.
Mineral and royalty interests can provide exposure to hydrocarbon production and development without requiring the same level of direct operating capital as working interests. By adding these assets to its existing platform, Crescent expects to improve its understanding of future development activity and strengthen the overall position of its royalties business.
Crescent’s longstanding minerals ownership in the area is expected to provide an additional advantage. Its familiarity with operators, geology and development activity can help the company evaluate opportunities across both its operating assets and mineral interests. The combination may also support closer coordination between the company’s operating business and its royalties platform.
Maintaining Financial Discipline
Despite the size of the acquisition, Crescent intends to maintain a disciplined financial approach. The proposed financing structure is designed to balance the funding requirements of the transaction with the company’s objective of preserving a strong balance sheet.
Crescent expects the additional scale and free cash flow generation associated with the acquired assets to support debt reduction following the transaction. The company also expects the acquisition to advance its progress toward an investment-grade credit profile.
Maintaining financial flexibility will remain important as Crescent integrates the assets and pursues development opportunities. The company’s focus on disciplined capital allocation is intended to ensure that spending decisions remain aligned with expected returns, operating priorities and balance-sheet objectives.
Leadership Highlights Strategic Opportunity
David Rockecharlie, chief executive officer of Crescent Energy, said the acquisition represents an important step forward for the company, adding high-quality assets at an attractive valuation in the heart of one of its core operating areas.
Rockecharlie highlighted Crescent’s longstanding minerals ownership and nearby operations as important advantages in evaluating the properties. He also emphasized the opportunity to improve the acquired assets through the company’s established operating strategy.
According to the CEO, the transaction will reinforce Crescent’s position in the Eagle Ford while creating additional opportunities to generate value through operational improvements and disciplined investment.
The acquisition brings together a substantial production base, more than 600 Tier 1 drilling locations and mineral interests that complement Crescent’s existing portfolio. If completed as anticipated, it would significantly expand the company’s operating presence and provide opportunities to capture cost efficiencies across the combined business.
With closing expected in late 2026 or early 2027, Crescent will proceed through the customary closing process before integrating the acquired properties. The company’s stated priorities remain improving operational performance, generating free cash flow, strengthening its royalties platform and maintaining balance-sheet discipline.
The transaction reflects Crescent’s continued focus on acquiring assets that complement its existing operations and offer opportunities for long-term value creation. By expanding its Eagle Ford footprint and applying its operating expertise, the company aims to strengthen its competitive position while supporting sustainable financial performance and progress toward its investment-grade objectives.
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