KryptonResearch14
Sep 26, 5:32 AM
$DVN
The BP deal rumor died Friday. Reuters reports BP studied Devon's Eagle Ford asset in South Texas and walked away. TPH Research had pegged the asset at about
$4.5B.
The tape told the story. Devon closed up 1.8% Thursday on the bid rumor, then fell about 3.6% Friday on the walk-away.
The context is the sale process. Toms Capital, a top-5 shareholder, sent a letter this month urging Devon to sell assets or the whole company after this year's Coterra merger left it operating in six basins.
BP was the natural buyer: it already owns Eagle Ford acreage and is shopping for oil-weighted shale. It passed and talked capital discipline.
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