Devon Energy Corp. (NYSE: DVN) issued updated guidance for 2026 following the completion of its merger with Coterra Energy. The combined company expects production to average 1.38 million barrels of oil equivalent per day for 2026, including oil volumes of 500,000 barrels per day.

The company plans to invest approximately $4.9 billion in capital expenditures for 2026, with more than 60% allocated to the Permian Basin. The capital program includes 31 rigs and 10 completion crews, with 460 to 480 net wells expected to come online during the year.

Devon announced plans to return up to 70% of free cash flow to shareholders through a quarterly fixed dividend of $0.32 per share and its previously announced $8 billion share repurchase authorization. The company expects to retire $1.25 billion of debt in 2026.

The merger synergies are projected to reach $600 million in 2027, with the company targeting $1.0 billion of annual pretax synergies on a run-rate basis by year-end 2027. Devon stated it is conducting a portfolio review to concentrate around its Permian Basin position.

"We are carrying a sense of urgency into all aspects of our business, including integration, execution, and our portfolio review," said Clay Gaspar, president and CEO. "Today's guidance underscores the strength of our newly combined platform as one of the largest and most efficient E&P companies."

The company provided detailed production and capital expenditure guidance ranges for the second quarter and full year 2026, reflecting standalone Devon operations plus Coterra beginning May 7, 2026. Information is based on a company press release.