Devon Energy and Coterra Energy agreed on 2 February to combine in an all-stock merger that implies an enterprise value of about $58bn for the enlarged company, which will keep the Devon name.
Why Devon Energy Corporation is buying Coterra Energy Inc.
The companies said the merger creates a large-cap shale operator anchored by nearly 750,000 net acres in the core of the Delaware Basin, which would account for more than half of combined output and cash flow and offer more than 10 years of high-quality drilling inventory. Pro forma third-quarter 2025 production exceeded 1.6 million barrels of oil equivalent a day, including over 550,000 barrels of oil. Management expects $1bn of annual pre-tax synergies from an optimised capital programme, operating margins and corporate costs, plus gains from combining technology and AI platforms.
Deal terms and financing
Coterra shareholders receive a fixed 0.70 Devon share for each Coterra share; Devon holders own about 54% and Coterra holders about 46% on a fully diluted basis. After closing the company planned a quarterly dividend of $0.315 per share and a share buyback authorisation of more than $5bn. Devon chief executive Clay Gaspar leads the group, with Coterra's Tom Jorden as non-executive chairman, on an 11-member board.
Regulatory approvals and timing
The deal needed regulatory clearance and approval from both sets of shareholders, which voted in favour on 4 May 2026. Devon and Coterra completed the merger on 7 May, World Oil reported, and Coterra shares ceased trading on the NYSE.
Market context
The combined company is headquartered in Houston while keeping a significant presence in Oklahoma City, and also operates in the Marcellus Shale and Anadarko Basin. Its pro forma net debt was about 0.9 times EBITDAX as of 30 September 2025.
