Devon Energy Explores $4 Billion Sale of Eagle Ford and Powder River Assets to Sharpen Permian Focus After Coterra Merger

Devon Energy is exploring the sale of its Eagle Ford and Powder River Basin shale assets, which together could fetch more than $4 billion, Bloomberg News reported on July 24. The company plans to confirm the strategic review when it reports second-quarter 2026 results on August 4. No final decision has been made, and Devon could choose to retain the assets.

The Post-Coterra Portfolio

Devon and Coterra Energy completed their all-stock merger on May 7, 2026, forming a combined entity with pro forma production exceeding 1.6 million barrels of oil equivalent per day. Devon shareholders retained approximately 54% of the combined company, with former Coterra Chairman Tom Jorden serving as Non-Executive Chairman of the board. The transaction targeted $1 billion in annual pre-tax synergies by year-end 2027.

The merger brought Coterra's Anadarko Basin and Marcellus Shale positions into Devon's portfolio alongside Devon's existing Eagle Ford and Rocky Mountains exposure. The combined company holds 90,000 net acres in the Eagle Ford, roughly 730,000 net acres across the Powder River and Williston Basins in the Rockies, and anchors its strategy around the Delaware Basin in the Permian. Devon's Delaware Basin position, reinforced by Coterra's adjacent acreage, forms the core of the company's long-term growth inventory.

The Permian-First Capital Allocation

Devon's 2026 capital budget of $4.9 billion directs more than 60% of spending to the Permian Basin. The company reinforced that commitment on May 21, five days after closing the Coterra merger, by acquiring 16,300 net undeveloped acres in the core of the Delaware Basin for $2.6 billion. That acquisition covers Lea and Eddy Counties in New Mexico, at an implied per-acre price of $159,500.

A $4 billion exit from 90,000 Eagle Ford acres and a substantial Powder River Basin position would return capital at a fraction of that per-acre cost. This reflects management's stated view that Permian Delaware inventory commands a structural premium over other basins. Devon's Permian-first capital allocation leaves Eagle Ford and Powder River Basin in the role of value extraction rather than growth investment, making divestiture a logical portfolio step.

What Comes Out of the Portfolio

Devon holds 90,000 net acres in the Eagle Ford Shale across South Texas, a producing position with established midstream infrastructure. The Powder River Basin holding, part of the broader 730,000-net-acre Rockies footprint, targets the Niobrara and Mowry shale formations in Wyoming. Devon's Q2 2026 results on August 4 will provide the first detailed financial breakdown from the post-Coterra combined entity, including basin-level production and capital data.

Devon's standalone Q1 2026 results, reported on May 5 before the Coterra merger closed, showed net earnings of $899 million and production of 841,000 barrels of oil equivalent per day. The post-merger combined entity's production exceeds 1.6 million Boe per day, roughly double the standalone figure. Eagle Ford and Powder River Basin together represent a material share of that combined output, giving both assets strategic weight in any divestiture valuation.

Eagle Ford Market Context

Devon's exploration process surfaces as appetite for Eagle Ford acreage intensifies. On July 20, Magnolia Oil and Gas agreed to acquire WildFire Energy for $4.06 billion, adding approximately 810,000 net acres in the Eagle Ford at an implied $5,012 per acre. Devon's 90,000 net acres represent a smaller but more developed and producing position than WildFire's largely undeveloped acreage, which typically commands a higher per-acre multiple on production metrics. Large-cap operators with existing Eagle Ford presence, including EOG Resources and ConocoPhillips, hold balance sheets capable of supporting a transaction of this scale.

Devon has selectively exited non-core assets throughout its history, including Canadian oil sands interests in 2019 and its Barnett Shale position in 2020. Each exit concentrated capital in basins where Devon could sustain top-quartile returns. The Eagle Ford and Powder River Basin sale, if completed, would continue that pattern and leave the combined Devon-Coterra entity as a predominantly Permian and Anadarko operator.