Crescent Energy to buy Devon's Eagle Ford assets for $4.2 billion, launches $1 billion stock offering

CRGY agreed to acquire DVN's Eagle Ford assets for $4.22 billion in cash, according to its 8-K filing, an estimated net purchase price of about $3.85 billion after adjustments tied to a July 1, 2026 effective date. Crescent shares fell 2.4% pre-market Thursday after the announcement, which adds Tier 1 inventory directly adjacent to its existing Eagle Ford operations. The deal is expected to close in the fourth quarter of 2026 or early 2027, subject to customary conditions including the antitrust waiting period.

The assets cover about 89 thousand net acres, 97% operated, with July 2026 run-rate production of about 68 Mboe/d and more than 600 Tier 1 net locations in the Karnes Trough, according to Crescent. The company identified about $140 million in annual synergies across drilling and completions, lease operating expense and marketing, and its pro forma proved reserves rise to 1,127.3 million barrels of oil equivalent from 975.5.

To fund part of the price, Crescent filed a preliminary prospectus for $1 billion of Class A common stock, with an underwriters' option for up to $150 million more, and a KKR affiliate holding about 7.9% of the stock indicated interest in buying up to $500 million. The rest is expected to come from debt financing, cash on hand and its revolver, backed by a bridge facility of up to $2.0 billion. At the $13.47 closing price on October 7, a $1 billion raise implies roughly 74 million new shares before any price move.

For Devon, the assets are about 4% of output. Devon said it will put after-tax proceeds toward accelerated share repurchases and debt reduction and that the sale lowers its corporate breakeven costs as it focuses on the Delaware Basin, according to OilPrice.com and Investing.com summaries of its announcement; Reuters framed the sale as Devon deepening its Permian bet. DVN rose 2.6% early Thursday, and Devon plans to update guidance with third-quarter results on Nov. 5.