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Crescent Energy to acquire Devon Energy's Eagle Ford assets

Crescent Energy to acquire Devon Energy's Eagle Ford assets

Money Moves

KKR-backed Crescent pays $3.85 billion net for Devon's Eagle Ford, selling 92 million shares at $12.50 to help fund the purchase

November 3rd, 2026: Crescent sets 1.5x leverage target for year-end 2027

Overview

Updated Oct 28

Crescent Energy agreed on October 8 to buy Devon Energy's Eagle Ford shale assets in South Texas for $4.2 billion in cash, about $3.85 billion net. Crescent plans to pay with a stock sale that grew to 92 million shares at $12.50 each, about $1.1 billion after fees, and a $1.5 billion five-year term loan.

The deal adds about 68,000 barrels of oil equivalent a day and more than 600 drilling locations, with $140 million in expected annual savings. On a pro forma basis, Crescent would produce about 170,000 barrels of oil a day. Closing is expected in the fourth quarter of 2026 or early 2027, pending regulatory approval.

Why it matters

If it closes, the deal makes Crescent one of the Eagle Ford's largest operators and removes Devon from the basin, extending shale's consolidation wave.

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Key Indicators

$3.85B
Net purchase price
Estimated net price Crescent pays for Devon's Eagle Ford assets, after customary adjustments.
68 Mboe/d
Acquired production
Current run-rate production from the assets as of July 2026.
600+
Tier 1 drilling locations
Net drilling locations normalized to 10,000 feet in the acquired acreage.
$1.1B
Equity raise
Crescent sold 92 million shares at $12.50, including the full underwriter option, for about $1.116 billion net. A KKR affiliate bought 40 million.
$140M
Identified annual synergies
Annual cost savings Crescent expects from combining the assets with its operations.
27.8%
Share count increase
Class A shares outstanding rose from 330.5 million on September 30 to 422.5 million on October 30 after the stock sale.
1.5x
Leverage target
Crescent's goal for the end of 2027, after the Devon acquisition closes.

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Organizations Involved

Crescent Energy Company
Crescent Energy Company
Oil and gas producer
Buying Devon's Eagle Ford assets; raised about $1.1 billion selling stock and syndicated a $1.5 billion term loan for the purchase

Houston-based oil and gas producer backed by KKR, focused on the Eagle Ford and other onshore basins.
Devon Energy Corporation
Devon Energy Corporation
Oil and gas producer
Seller of Eagle Ford assets

Oklahoma City-based oil and gas producer selling its Eagle Ford assets to focus on higher-return plays.
KKR & Co. Inc.
KKR & Co. Inc.
Private equity firm
Crescent backer; affiliate bought 40 million shares in Crescent's completed $1.1 billion stock sale

Investment firm that is an investor in Crescent Energy; committed up to $500 million to Crescent's equity offering

Timeline

July 2026 November 2026

8 events Latest: November 3rd, 2026 · 1 week ago
Tap a bar to jump to that date

  1. Crescent sets 1.5x leverage target for year-end 2027

    Latest Financing

    On its third-quarter earnings call, Crescent said it aims to bring leverage to 1.5x by the end of 2027, after the Devon acquisition closes.

  2. Crescent reports third-quarter results and raises Permian synergy target

    Earnings

    Crescent produced 328,000 barrels of oil equivalent a day, including 134,000 barrels of oil, and generated $367 million in levered free cash flow. It raised its Permian synergy target above $300 million, with about $295 million captured, and declared a $0.12 quarterly dividend.

  3. Crescent's financing for the Devon deal takes shape

    Financing

    Crescent sold 92 million Class A shares at $12.50, including the full 12 million-share underwriter option, for about $1.116 billion in net proceeds; shares outstanding rose from 330.5 million on September 30 to 422.5 million on October 30. It also syndicated a $1.5 billion five-year term loan at 2.25 percentage points over SOFR, priced at 99.5 cents on the dollar, to fund at closing.

  4. Crescent amends credit agreement to permit Devon deal and bridge loan

    Financing

    Crescent Energy Finance signed a Sixteenth Amendment to its credit agreement. It permits the Devon Eagle Ford acquisition and up to a $2.0 billion 364-day unsecured bridge facility, and keeps elected commitments at $2.0 billion.

  5. Crescent announces $3.85B net deal for Devon's Eagle Ford assets

    Deal

    Crescent Energy agrees to buy Devon's Eagle Ford assets for $4.2 billion in cash, about $3.85 billion net.

  6. Crescent secures $2B bridge financing from JPMorgan

    Financing

    Crescent obtains a debt commitment letter from JPMorgan for a bridge credit facility of up to $2 billion.

  7. Crescent launches $1 billion stock offering for the acquisition

    Financing

    Crescent opened an underwritten offering of $1 billion in Class A shares to help fund the deal. KKR, which holds about 7.9% of Crescent's Class A shares, committed to buy up to $500 million of the new stock.

  8. Economic effective date set for the deal

    Deal

    The transaction's economic effective date, from which hydrocarbon sale proceeds reduce the purchase price.

Scenarios

1

Deal closes as planned in early 2027

Likely Resolves by Q1 2027

Discussed by: Crescent and Devon management, who both expect close in Q4 2026 or early 2027

The transaction clears regulatory review and closes in the fourth quarter of 2026 or early 2027. Crescent funds the purchase with the $1.1 billion stock sale, a $1.5 billion term loan and a $2 billion bridge facility from JPMorgan. Devon uses after-tax proceeds for share repurchases and debt reduction.

2

Regulatory review delays or renegotiates the deal

Possible Resolves by Q2 2027

Discussed by: Market analysts watching antitrust scrutiny of shale consolidation

Federal regulators extend their review of the deal, pushing closing past the first quarter of 2027, or Crescent negotiates a lower price citing asset performance. The deal would still close, but on different terms or a later timeline than announced.

3

Deal falls through

Unlikely Resolves by Q2 2027

Discussed by: Not widely predicted; both companies express confidence in closing

Either party terminates the agreement due to financing failure, regulatory rejection, or a material change in asset value. Crescent would need to find alternative growth, and Devon would retain the assets and continue operating them.

4

Equity offering dilutes per-share value more than expected

Deadline passed (Nov 5, 2026)

Discussed by: Energy Alpha and market analysts tracking the offering

Crescent sold 92 million shares at $12.50, lifting its share count 27.8% to 422.5 million. KKR's affiliate bought 40 million of them, anchoring demand. Energy Alpha's analysis argues investors should watch per-share value, not the headline price.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

October 2023

ExxonMobil acquires Pioneer Natural Resources (2023)

ExxonMobil agreed to buy Pioneer Natural Resources for $59.5 billion in an all-stock deal, the largest acquisition in the Permian Basin's history. The deal gave Exxon control of Pioneer's roughly 850,000 net acres in the Permian's Midland Basin.

Then

The deal closed in May 2024 after a Federal Trade Commission review that barred Pioneer's founder from Exxon's board.

Now

It set a benchmark for shale consolidation, with rivals rushing to combine acreage.

Why this matters now

Like the Crescent-Devon deal, it shows how large producers are consolidating the best shale acreage into fewer, larger operators.

February 2024

Diamondback Energy merges with Endeavor Energy (2024)

Diamondback Energy agreed to merge with Endeavor Energy Resources in a $26 billion cash-and-stock deal, creating the largest pure-play Permian producer. The combined company held about 838,000 net acres.

Then

The merger closed in late 2024, creating a company with roughly 600,000 barrels of oil equivalent per day of production.

Now

It reinforced the trend of consolidation in US shale as companies seek scale and efficiency.

Why this matters now

The Crescent-Devon deal applies the same logic to the Eagle Ford, concentrating the basin's best acreage in a single operator.

Sources

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Devon Energy Crescent Energy Company StreetInsider / SEC Wall Street Journal World Oil Bloomberg Law Financial News Novilabs Energy Alpha Earnings API Simpson Thacher & Bartlett StockTitan / SEC 8-K Crescent Energy / SEC Quiver Quantitative Devon Energy RBN Energy Kalkine Seeking Alpha Crescent Energy Company / SEC Energy Alpha Crescent Energy Company / SEC