BP reported to have explored acquisition of Devon assets before backing away

BP (NYSE: BP) reportedly explored a potential acquisition of Devon Energy’s (NYSE: DVN) Eagle Ford shale assets in South Texas, according to four sources familiar with the matter cited by Reuters last week. One of the sources told the news service that the supermajor ultimately decided not to proceed with such a deal.

This came amid a broader shift in BP’s strategy. The supermajor had spent a few years prioritising investments in renewables before pivoting back to focusing on oil and gas more recently. This focus has continued since Meg O’Neill took over as BP’s CEO in April this year. Reuters cited six sources as saying that since then, BP has entered the data room on a small number of shale assets that had been put up for sale. Four of the sources went on to say that among these was the data room for Devon’s Eagle Ford assets, which had opened in late August. Reuters also cited analysts at TPH Research as saying in ⁠a note last week that Devon's Eagle Ford assets could be worth around $4.5bn.

It is unclear why BP apparently decided to walk away from an acquisition in this instance, but Reuters’ sources noted that entering a data room did not guarantee that the supermajor would formally bid on any assets.

“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,” BP told Reuters in an emailed comment. The news service added that BP’s other priorities include simplifying its portfolio, operational excellence and faster decision making with higher accountability.

BP’s US shale operations are operated via its BPX Energy unit, with assets located in the Eagle Ford, Permian and Haynesville plays across Texas and Louisiana. The unit produced roughly 460,000 barrels of oil equivalent per day (boepd) in 2025 and is targeting around 650,000 boepd by 2030 according to BPX’s website. A presentation from August shows that the unit’s output rose to 545,000 boepd in the second quarter of 2026, with the Eagle Ford accounting for around 205,000 boepd of this.

Devon, for its part, is conducting a portfolio review following the close of its merger with Coterra Energy in May this year, with a view to offloading non-core assets. Reuters’ sources noted that both Devon’s Eagle Ford and Powder River Basin assets were being marketed for sale. According to Devon’s website, the Eagle Ford assets consist of around 90,000 net acres (364 square km) and had production of roughly 77,000 ⁠boepd in the second quarter of 2026.