BP Eyes Bigger U.S. Shale Footprint After Devon Deal Talks
BP has started looking seriously at U.S. shale assets again, including Devon Energy’s Eagle Ford business, as CEO Meg O’Neill pushes the company back toward oil and gas growth. BP entered the data room for Devon’s South Texas assets after it opened in late August, according to Reuters sources. One source said BP ultimately walked away from a deal. Devon’s Eagle Ford position covers about 90,000…
BP executives, led by CEO Meg O'Neill, are showing renewed interest in U.S. shale assets, specifically Devon Energy's Eagle Ford business, according to recent reports. After reviewing Devon's South Texas assets in late August data room, BP ultimately decided not to proceed with a deal. The Eagle Ford position spans around 90,000 net acres, generating approximately 77,000 barrels of oil equivalent per day in the second quarter.
Valued at about $4.5 billion, the assets' market price is estimated between $3.5 billion and $4 billion. BP already possesses knowledge of the region, as the BPX Energy unit produced around 545,000 barrels of oil equivalent per day in the second quarter, with approximately 205,000 barrels coming from the Eagle Ford. BP aims to boost this production to over 650,000 barrels of oil equivalent per day by 2030.
This renewed focus is surprising, given BP's recent focus on asset divestment and debt reduction. O'Neill's push for growth may be changing this trend, with BP having entered data rooms for a few shale assets for sale, though a bid has not been made. Higher oil prices, reaching above $100 last week due to Middle East supply concerns, are making U.S. assets more attractive, offsetting the increased costs.
Devon is now selling both its Eagle Ford and Powder River Basin assets, following its $58 billion merger with Coterra.
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