BP Considered Acquiring Devon’s Eagle Ford
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BP recently evaluated a potential acquisition of Devon Energy’s South Texas operations before ultimately deciding to walk away, according to sources familiar with the matter.
The London-based energy giant has recently shifted its focus back to its core oil and gas business following years of prioritizing renewables and experiencing significant leadership turnover. Under CEO Meg O’Neill, who took the helm in April, BP has accessed confidential data rooms for a select number of shale assets on the market, including Devon’s Eagle Ford operations, which opened to prospective buyers in late August.
Analysts at TPH Research estimated that Devon’s Eagle Ford asset could be valued at around $4.5 billion, though other sources suggested a range between $3.5 billion and $4 billion. After reviewing the asset, BP chose not to pursue a bid.
Sources emphasized that entering a data room is a routine exploratory step and does not guarantee a formal offer. In response to inquiries, BP reiterated its focus on capital discipline and strengthening its balance sheet, while Devon did not comment.
BP’s U.S. onshore operations are managed through its BPX Energy unit, which active in the Permian, Haynesville, and Eagle Ford basins. BPX produced approximately 545,000 barrels of oil equivalent per day (boepd) in the second quarter, with about 205,000 boepd coming from its existing Eagle Ford footprint. The company aims to increase BPX production to over 650,000 boepd by 2030.
Though BP has spent the last 18 months focusing on debt reduction and a $20 billion divestment target, its recent look at Devon’s acreage represents a notable return to evaluating shale acquisitions. Industry experts noted that acquiring nearby acreage would align with BP’s strategy, especially given that BP and Devon previously operated a joint venture in the Eagle Ford until its dissolution in 2025.
Meanwhile, Devon is currently marketing its Eagle Ford and Wyoming-based Powder River basin acreage as part of a portfolio optimization review following its $58 billion merger with Coterra Energy. Devon’s Eagle Ford position spans roughly 90,000 net acres and produced about 77,000 boepd in the second quarter. The company is also facing pressure from activist investors TOMS Capital and Kimmeridge Energy Management to streamline operations and boost performance.
While U.S. shale assets remain highly attractive amid geopolitical tensions in the Middle East, recent market volatility and fluctuating crude prices have widened the gap between buyer and seller valuation expectations, slowing overall deal activity in the sector.
