If the reports are right, Devon Energy Corp. is in the hunt for an acquisition, one aimed at widening its holdings in the Permian Basin.
Bloomberg and Seeking Alpha reported this week that Devon is considering what they called “major acquisition targets” and one of them is reported to be Marathon Oil Corp.
People who asked to not be identified because the matter isn’t public indicated Devon leadership has been in preliminary talks over the past few months with Marathon. The reported targeted company is a major player in Oklahoma, Texas and New Mexico and has a market value of nearly $17.5 billion.
According to a report by Bloomberg, Devon has also been looking at CrownRock LP, another producer in the Permian Basin. Such a possible acquisition might total $10 billion for the closely-held company.
If indeed Devon is considering either firm for a possible acquisition, it would be the company’s biggest such move since 2021 when it took over WPX Energy in a $2.6 billion deal.
While it is not in the Permian Basin, Devon finalized a $1.8 billion adquisition a year ago of Validus Energy, an Eagle Ford operator. The acquisition gave Devon another 42,000 net acres and 90% working interest in that part of South Texas.