BP Eyes Devon Energy's Eagle Ford Assets as It Renews U.S. Shale Deal Push

BP is considering a bid for DVN's Eagle Ford shale assets in South Texas as part of a renewed push to grow its U.S. onshore oil business, Reuters reported on September 24, citing people familiar with the matter . BP has been looking at predominantly oil-producing shale assets valued between $2 billion and $5 billion, and sources familiar with the Devon sale process put the Eagle Ford package at $3.5 billion to roughly $4 billion. Reuters cautioned that entering a data room does not guarantee a formal bid.

The asset is sizable. Devon's Eagle Ford position produced about 77,000 barrels of oil equivalent per day in the second quarter across about 90,000 net acres, and TPH Research values it at about $4.5 billion. Devon is also marketing its Powder River Basin acreage in Wyoming. Some outlets have described the Eagle Ford assets as a $4 billion package, a figure that sits at the top of the range sources gave Reuters.

For BP, the fit is straightforward: its BPX Energy unit produced 545,000 boepd in the second quarter, about 205,000 of it from its existing Eagle Ford footprint, and targets more than 650,000 boepd by 2030. Devon shares closed 1.8% higher on Thursday and are up about 34% this year. Watch for whether BP submits a formal offer, how the price compares with the $3.5 billion to $4 billion range, and whether Devon pairs an Eagle Ford sale with the Powder River divestiture.