Devon Energy and Coterra Energy announce $58 billion merger deal

Devon Energy (NYSE: DVN) and Coterra Energy (NYSE: CTRA) announced a definitive agreement to merge in an all-stock transaction with a combined enterprise value of approximately $58 billion, according to a company statement.

Under the agreement, Coterra shareholders will receive 0.70 shares of Devon common stock for each Coterra share. Devon shareholders will own about 54 percent of the combined company, while Coterra shareholders will hold approximately 46 percent on a fully diluted basis.

The merged company will retain the Devon Energy name and be headquartered in Houston while maintaining operations in Oklahoma City. The transaction was unanimously approved by both boards of directors and is expected to close in the second quarter of 2026, subject to regulatory approvals and shareholder approval from both companies.

The companies project $1 billion in annual pre-tax synergies by year-end 2027 through optimized capital programs, operating margin improvements, and streamlined corporate costs. Pro forma third quarter 2025 production would exceed 1.6 million barrels of oil equivalent per day, including over 550,000 barrels of oil per day.

Clay Gaspar will serve as President and CEO of the combined company, while Tom Jorden will assume the role of Non-Executive Chairman. The board will consist of 11 members, with six from Devon and five from Coterra.

Upon closing, the company plans to declare a quarterly dividend of $0.315 per share and establish a new share repurchase authorization exceeding $5 billion, both subject to board approval. The combined entity will have an estimated pro forma net debt-to-EBITDAX ratio of 0.9x and $4.4 billion in total liquidity as of September 30, 2025.

The Delaware Basin operations will account for more than 50 percent of the combined company's total production and cash flow, with pro forma third quarter 2025 production of 863,000 barrels of oil equivalent per day across nearly 750,000 net acres.

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