US-based oil and gas company Devon Energy is looking to expand its presence in US shale through acquisitions, reported Bloomberg News, citing people familiar with the matter.
Devon held preliminary talks in recent months for a potential partnership with independent exploration and production (E&P) company Marathon Oil, the people said.
Marathon Oil is focused on four of the resource plays in the US: Eagle Ford, Texas; Bakken, North Dakota; STACK and SCOOP in Oklahoma; and Permian in New Mexico and Texas.
As per the estimates, Marathon has a market value of around $17.5bn, reported Bloomberg.
Marathon Oil recently signed a liquefied natural gas (LNG) supply agreement with Glencore’s subsidiary, Glencore Energy UK.
Separately, Devon is looking to acquire private equity-backed oil and gas producer CrownRock, which has been seeking potential companies for a sale of the business.
CrownRock is a US-based oil and gas producing joint venture comprising CrownQuest Operating and Lime Rock Partners.
Last month, Reuters reported that a potential sale of CrownRock could value it at more than $10bn including debt.
CrownRock is engaged in the acquisition, development, exploitation and exploration of oil and natural gas properties.
It owns assets in Texas, New Mexico and Utah. The company’s operations are primarily focused on the development of its assets in the core Permian Basin.
Devon has not made final decision on an acquisition of CrownRock and could decide not to pursue either target, according to the people.
In the fourth quarter of 2022, Devon had daily production of approximately 315,000 barrels of oil, around 150,000 barrels of natural gas liquids and more than one billion cubic feet of natural gas.
