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(Bloomberg) — Devon Energy Corp. is exploring a sale of its Eagle Ford and Powder River shale assets as part of a streamlining of its portfolio, which together could fetch more than $4 billion, according to people familiar with the matter.
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Devon aims to announce a strategic review of the assets, located in South Texas and Wyoming, respectively, when it reports earnings in early August, one of the people said, asking not to be identified because the discussions are private. No final decision has been made, the timing could change or Devon could opt to hold onto the assets, the people added.
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A representative for Devon didn’t immediately respond to requests for comment.
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US shale operators have been selling assets to pay down debt following a consolidation wave totaling more than $450 billion in deals since the start of 2023.
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Devon has been pushed by investors to sell assets and focus on its largest business in the Permian Basin of West Texas and New Mexico following its $25 billion acquisition of Coterra Energy Inc., which was announced in February.
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“Acquiring Coterra further diversifies a fairly diffuse asset base,” Vince Piazza, an analyst at Bloomberg Intelligence, wrote in a July 20 report. “Though Permian concentration will grow, asset sales will likely be needed.”
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Kimmeridge Energy Management Co., an outspoken shale investor, criticized Devon’s divestment program this month as too slow. Toms Capital Investment Management, a top-five shareholder in the stock, is considering all options to spur action at Devon, Bloomberg News reported this month.
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Last month, Devon Chief Executive Officer Clay Gaspar told investors in New York that the company is moving with haste to evaluate its portfolio, calling it a months-long rather than a years-long exercise.
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