(WO) — Crescent Vitality has entered right into a definitive settlement to accumulate Devon Vitality‘s Eagle Ford belongings for an estimated web buy value of $3.85 billion, including roughly 68,000 boed of manufacturing and greater than 600 drilling areas to its South Texas operations.
The acquisition will increase Crescent’s place within the Eagle Ford shale, with the belongings situated immediately adjoining to its present operations within the Karnes Trough. The transaction is predicted to shut within the fourth quarter of 2026 or early 2027, topic to customary closing circumstances.
The acquired portfolio consists of greater than 600 Tier 1 web drilling areas, normalized to 10,000-ft laterals, offering Crescent with extra growth stock in considered one of its core working areas.
Crescent expects the acquisition to generate roughly $140 million in annual synergies by means of drilling and completions, lease working bills and advertising and marketing efficiencies. The corporate additionally anticipates enhancements in money stream, margins and capital effectivity because it integrates the belongings into its present operations.
“This acquisition represents a big step ahead for Crescent, including high-quality belongings at a horny valuation within the coronary heart of considered one of our core working areas,” mentioned David Rockecharlie, CEO of Crescent Vitality. “We all know these belongings exceptionally nicely by means of our longstanding minerals possession and close by operations, and see significant alternative to make them even higher.”
The transaction additionally consists of Devon-owned mineral pursuits that may increase Crescent Royalties, the corporate’s minerals platform, rising its scale and growth publicity throughout the acquired acreage.
Crescent mentioned the acquisition’s financing construction and anticipated free money stream era will help continued debt discount and its progress towards an investment-grade credit score profile.
The settlement stays topic to customary closing circumstances.