DEVON ENERGY CORP/DE (DVN) Company Report

The all-stock merger combines Devon and Coterra into a premier E&P company with 1.6 million boe/d of production and leading Delaware Basin presence.
The transaction targets $1 billion in annual pre-tax synergies by end-2027, equivalent to ~20% of combined market cap.
The combined company holds ~750,000 net acres of stacked pay and produces >860,000 boe/d in the Delaware Basin, backed by 5,000 gross drilling locations and sub-$40 break-even inventory over a 10-year runway.
Pro forma liquidity of $4.4 billion, 0.9x net debt/EBITDAX, target <50% reinvestment rate, with a $0.315/share quarterly dividend and >$5 billion share buyback plan.

3 days ago

Transcript

Devon Energy and Coterra Energy announce merger

DVN

M&A

Devon Energy and Coterra Energy have agreed to an at-market all-stock merger creating a premier large-cap E&P company, with Clay Gaspar as President & CEO and Tom Jorden as Chairman.
The combined entity will leverage its Delaware Basin position—over half of pro forma production and cash flow—and a diversified Lower 48 portfolio enhanced by AI-driven operations.
Management targets $1 billion in annual pre-tax synergies by year-end 2027 (≈20% of pro forma market cap), split among $350 million in capital optimization, $350 million in operating margins, and $300 million in corporate cost savings.
Pro forma liquidity of $4.4 billion, net debt/EBITDAX of 0.9x, a base quarterly dividend of $0.315 per share, and a planned $5 billion+ share repurchase authorization underpin the combined company’s financial strategy.

3 days ago

Transcript

Devon and Coterra announce transformative merger

DVN

M&A

All-stock combination creates a premier shale operator with a pro forma enterprise value of $58 billion, an exchange ratio of 0.70 Devon share per Coterra share, and pro forma equity ownership of 54% Devon and 46% Coterra.
Expected to close in Q2 2026, subject to shareholder and regulatory approvals.
Targets $1.0 billion of pre-tax synergies by year-end 2027, with a pro forma net-debt-to-EBITDAX of 0.9x and $4.4 billion of liquidity.
Leadership roles include Clay Gaspar as President & CEO and Tom Jorden as Non-Executive Chairman, with a combined board of 6 Devon and 5 Coterra directors.
Plans to declare a quarterly dividend of $0.315 per share and seek share repurchase authorization in excess of $5 billion.

3 days ago

Presentation

Devon Energy and Coterra Energy announce merger

DVN

M&A

The all-stock merger of Devon Energy and Coterra will create one of the world’s largest shale producers with pro forma output of 1.6 MMboe/d, including 860,000 boe/d from the Delaware Basin.
The deal targets $1 billion in annual pre-tax synergies by year-end 2027 (≈ 20% of pro forma market cap) from capital optimization, operating margin enhancement, and corporate cost savings.
The combined company will start with $4.4 billion in liquidity, 0.9x net debt/EBITDAX, supports a $0.315/share quarterly dividend, and plans > $5 billion in share repurchases.
Headquarters will relocate to Houston, while maintaining a significant Oklahoma City presence.

3 days ago

Transcript

Devon Energy and Coterra unveil merger to create premier shale operator

DVN

M&A

Dividends

Share Buyback

The all-stock merger at a 0.70 exchange ratio implies a $58 billion enterprise value and yields 1.6 MMBOED pro forma 2026e production with a balanced oil (34%), gas (44%), and NGL (22%) mix.
The Delaware Basin franchise underpins 53% of pro forma volumes, with 746,000 net acres and 863,000 BOED of Q3 2025 production, offering >10 years of high-quality inventory.
Identified $1 billion in annual pre-tax synergies to be realised by year-end 2027 across capital optimisation, operating margin improvements, and corporate cost reductions.
Capital returns framework includes a planned $0.315 per share quarterly dividend and > $5 billion share repurchase program, alongside a pro forma 0.9x net debt/EBITDAX leverage ratio and $4.4 billion liquidity as of Q3 2025.

3 days ago

8-K

Devon Energy to merge with Coterra in $58B shale deal

DVN

M&A

Devon Energy and Coterra Energy agreed to merge in an all-stock transaction valued at $58 billion
Coterra shareholders will receive 0.70 Devon shares and post-merger Devon shareholders will own ~54% of the combined company
The merged firm will retain the Devon name, be headquartered in Houston with a major presence in Oklahoma City, and is expected to close in Q2 2026
The company plans a quarterly dividend of $0.315 per share and a share-repurchase authorization in excess of $5 billion, both subject to board approval
The combined entity will be anchored by over 10 years of Delaware Basin inventory, underpinning more than half of pro forma production and free cash flow

3 days ago

Bloomberg

Devon Energy to Merge with Coterra Energy

DVN

M&A

Dividends

Share Buyback

Devon Energy and Coterra Energy to combine in an all-stock transaction to form a leading large-cap shale operator named Devon Energy, headquartered in Houston, unlocking $1 billion of annual pre-tax synergies.
Coterra shareholders will receive 0.70 shares of Devon common stock per Coterra share; the deal implies a $58 billion combined enterprise value and will result in a 54/46 ownership split.
Pro forma third quarter 2025 production exceeds 1.6 million Boe/day, including 863,000 Boe/day in the Delaware Basin with over 10 years of high-quality inventory.
The combined company targets annual pre-tax synergies of $1 billion by year-end 2027, plans a $0.315 quarterly dividend and a $5 billion+ share repurchase authorization, maintains a 0.9x net debt-to-EBITDAX ratio and $4.4 billion liquidity as of September 30, 2025.

3 days ago

Press Release

Devon Energy and Coterra agree all-stock merger

DVN

M&A

Dividends

Share Buyback

Devon Energy (DVN) and Coterra Energy (CTRA) to merge in an all-stock transaction, forming a large-cap shale operator named Devon Energy, headquartered in Houston with a significant presence in Oklahoma City.
Coterra shareholders will receive 0.70 share of Devon for each Coterra share, implying a combined enterprise value of $58 billion, with pro forma ownership split of 54% Devon and 46% Coterra.
The transaction is projected to deliver $1 billion in annual pre-tax synergies, be accretive to free cash flow and net asset value, and includes a planned $0.315 quarterly dividend plus a $5 billion share buyback authorization upon closing.
Unanimously approved by both boards, the deal is expected to close in Q2 2026, subject to regulatory and shareholder approvals.

3 days ago

Press Release

E&P firms outline diversification and technology strategies at Goldman Sachs conference

DVN

New Projects/Investments

M&A

Panelists highlighted that a diversified upstream portfolio enables dynamic capital allocation across basins as commodity prices shift, drives operational synergies (e.g., marketing, flow assurance) and stabilizes cash flows, supporting 2–4× dividend coverage from free cash flow.
Devon Energy targets $1 billion of sustainable free cash flow by year-end, executing 80 AI-enabled workstreams to boost operational efficiency and exploring long-term opportunities aligned with core competencies.
Ovintiv has refocused on two core basins (Montney & Permian) to leverage its operational advantage, is preparing a Mid-Con divestiture to achieve a $4 billion net debt goal, and is deploying automation and AI across D&C and operations.
Northern Oil & Gas acquired a 49% non-operated stake in Utica upstream and midstream assets, lowering upstream unit costs from $3 to $1.80 per Mcf through integration and planning 3× volume growth over five years.
Consensus views U.S. shale’s marginal break-even at $65–70 WTI, noting that mature basins’ plateauing productivity is currently offset by operational technology sustaining capital efficiency.

Jan 6, 2026, 8:00 PM

Transcript

Shale E&P companies discuss portfolio diversification and capital efficiency

DVN

M&A

New Projects/Investments

Panelists from Devon, Ovintiv, Coterra and Northern Oil & Gas highlighted the strategic, operational and financial benefits of a balanced oil and gas portfolio, enabling dynamic capital allocation and stable cash flows.
Ovintiv has refocused on the Permian and Montney, planning to use proceeds from a Mid-Con sale toward a $4 billion net debt target and capturing $100 million of annual synergies from its NuVista acquisition.
Northern Oil & Gas detailed its 49% non-operated Utica transaction, acquiring both upstream and midstream assets to grow volumes threefold over five years and reduce unit operating costs from ~$3.00 to $1.80/MCF.
Devon set a $1 billion sustainable free cash flow target for 2026, underpinned by 80 AI-enabled workstreams that have already delivered a 60% run-rate toward that goal and promise end-to-end process redesigns.
Coterra’s Marcellus asset delivers high free cash flow at low reinvestment rates to fund Permian growth, and the team successfully remediated Culberson’s Harkey well issues to meet 2025 oil volume guidance.