BP Studied Buying Devon Energy's South Texas Shale Assets, Then Walked Away, Reuters Reports

BP looked seriously at buying Devon Energy's Eagle Ford shale operations in South Texas. Then it walked away.

Reuters reported the update through David French and Arathy Somasekhar and carried by Euronext, citing four people familiar with the matter. One of those sources said BP has now backed off the deal after evaluating it.

What BP was looking at

BP entered the data room for Devon's Eagle Ford asset in late August, according to six sources cited by Reuters. Analysts at TPH Research, the energy arm of Perella Weinberg Partners, valued the asset at around $4.5 billion in a note published Wednesday, September 23. Reuters reported BP had been targeting oil-producing shale assets valued between $2 billion and $5 billion.

The interest made sense on paper. BP already runs Eagle Ford operations through its BPX Energy shale unit, which produced roughly 205,000 barrels of oil equivalent per day out of BPX's total 545,000 boepd in the second quarter of this year. BP is targeting more than 650,000 boepd from BPX by 2030, according to the company's website. Buying acreage next to its existing footprint would have been a straightforward bolt-on.

Devon's Eagle Ford position runs about 90,000 net acres and produced 77,000 boe/day in the second quarter. Part of it was previously held in a joint venture with BP until that partnership dissolved in 2025. Devon is marketing the asset, along with its Powder River Basin acreage in Wyoming, as part of a broader portfolio review following its merger with Coterra Energy.

Why BP backed off

Reuters reported that after studying the deal, BP decided to walk away. In an emailed comment, BP said: "BP has been very clear about its five priorities, which includes a clear focus on strengthening the balance sheet - this priority remains unchanged alongside our commitment to maintaining capital discipline." The company's other stated priorities are simplifying its portfolio, operational excellence, and faster decision-making with higher accountability. Devon did not respond to a request for comment, per Reuters.

BP spent the past 18 months focused on cutting debt and hitting a $20 billion divestment target, a period that also saw five different CEOs since 2020 and leadership churn at the top, including the firing of chair Albert Manifold, replaced earlier this month by Ian Tyler. Meg O'Neill took over as CEO in April and has since steered BP back toward its traditional oil and gas business after years of renewable-energy investment. Entering a handful of shale data rooms, including Devon's, was part of that pivot. But entering a data room, Reuters noted, never guaranteed a bid.

The stock moves

Reuters reported BP shares fell 3.4% on Friday, while Devon's stock closed 1.8% higher on Thursday. Devon is up roughly 34% for the year, according to LSEG data cited by Reuters. Neither Reuters nor Euronext explicitly tied the Friday BP move to the Devon news specifically, so readers should treat that as a data point, not a confirmed cause and effect.

An earlier report from Ask Traders, also drawing on the same Reuters reporting, noted BP shares had closed at 571.8 pence, up 2.62% from the prior day's close of 557.2 pence, while cautioning that "Reuters did not tie this move to the Devon report, and the report does not establish that news of BP's interest had reached the market before the close." Stock moves and headlines don't always line up neatly.

Where the coverage split

Outlets including OilPrice.com, TipRanks, and TradingView reported on BP's interest in the Devon assets as an open, ongoing story, framing it around BP's renewed shale push under O'Neill. Those reports, drawing on the earlier stage of Reuters' reporting, did not include the update that BP has since walked away from the deal. That detail only appears in the most recent Reuters dispatch, carried by Euronext, which makes clear the courtship is over for now, at least on BP's end.

Unresolved: whether BP resumes shopping for shale bolt-ons elsewhere, and how quickly Devon finds another buyer for the Eagle Ford acreage it's still marketing alongside its Powder River Basin position in Wyoming. No sale has closed. No new bidder has been named publicly.