Devon Needs $3.3 Billion From the Eagle Ford Just to Get Back to Even
The Eagle Ford and Powder River may be for sale. Our Eagle Ford buyer value is $1.70–1.93 billion, using PDP at PV-10 and development at PV-20.
Bloomberg reported on July 24 that Devon is exploring a sale of its Eagle Ford and Powder River assets, which could fetch more than $4 billion combined. Reuters tied the potential divestment to shareholder pressure to simplify the post-Coterra portfolio and focus capital on the Permian.
No final decision has been announced, and the reporting does not provide an asset-level split. We are not subtracting an Eagle Ford estimate from the combined headline to manufacture a Powder River value.
Our estimate is that Devon needs approximately $3.32 billion from the remaining Eagle Ford asset merely to recover its nominal capital on a pre-tax, pre-G&A basis.
