Devon and Coterra agree to all-stock merger, target Q2 close

Devon Energy and Coterra Energy announced they have signed a definitive agreement to merge in an all-stock transaction that would create a larger U.S. shale operator anchored in the Delaware Basin. The combined company would keep the Devon Energy name, be headquartered in Houston, and maintain a significant presence in Oklahoma City. The companies say the deal is expected to deliver $1 billion in annual pre-tax synergies by year-end 2027 and support stronger free cash flow over time.

Under the agreement, Coterra shareholders would receive 0.70 shares of Devon common stock for each Coterra share. Using Devon’s closing price on January 30, 2026, the companies estimated a combined enterprise value of about $58 billion, with Devon shareholders owning roughly 54% and Coterra shareholders about 46% after closing (fully diluted). The transaction is expected to close in the second quarter of 2026, subject to regulatory review and shareholder approvals.

The companies highlighted the combined scale and shareholder-return plans, including a planned quarterly dividend of $0.315 per share and a new share repurchase authorization exceeding $5 billion (both subject to board approval). They also cited pro forma third-quarter 2025 production above 1.6 million barrels of oil equivalent per day, including more than 550,000 barrels of oil per day and 4.3 billion cubic feet of gas per day, with a large portion tied to the Delaware Basin. For more context on how investors evaluate upstream opportunities, see our approach and learn more about our company.

Source: Coterra Energy
Read the full original article here