BP Reenters Shale Market with Interest in Devon Energy's Eagle Ford Asset

BP has explored a potential deal to buy Devon Energy's operations in South Texas, specifically its Eagle Ford asset, sources say. This marks a strategic pivot back to oil and gas for the London-headquartered company, which has been focused on reducing debt and divestments under new CEO Meg O'Neill.

Devon is marketing both its Eagle Ford and Powder River basin acreage in Wyoming for sale as part of a portfolio review following its $58 billion merger with Coterra Energy. The TPH Research analysts valued Devon's Eagle Ford asset at around $4.5 billion, but sources point to a range between $3.5 billion and roughly $4 billion.

BP has been clear about its five priorities, which include strengthening the balance sheet and capital discipline. However, despite this focus on oil and gas, the company's production in the second quarter was around 545,000 barrels of oil equivalent per day (boepd), with its existing Eagle Ford producing approximately 205,000 boepd.

BP has targeted over 650,000 boepd from BPX by 2030 and is now re-emerging as a potential buyer in the shale market. Buying assets near its existing footprint would be logical, given the potential for cost savings and BP's familiarity with local geology.