Oklahoma City, February 2, 2026
Devon Energy Corp. and Coterra Energy Inc. have agreed to merge in an all-stock transaction valued at approximately $58 billion. This merger will elevate the new entity as a top shale operator in the U.S., closing in Q2 2026, contingent upon regulatory approvals and shareholder votes. Following the merger, Devon shareholders will own about 54%, with Coterra holding 46%. Although headquartered in Houston, the merged company will retain a significant presence in Oklahoma City, boosting the local energy sector.
Oklahoma City, OK – Devon Energy Corp. and Coterra Energy Inc. have entered into a definitive agreement to merge in an all-stock transaction that is valued at approximately $58 billion. This merger stands to position the combined entity as a leading shale operator in the United States, further bolstering Oklahoma City’s reputation as a significant hub within the energy sector. Set to close in the second quarter of 2026, the merger is subject to regulatory approvals and shareholder votes from both companies.
Under the terms of the agreement, shareholders of Coterra will receive 0.70 shares of Devon common stock for each share they currently hold. Upon completion of the merger, Devon shareholders are projected to own about 54% of the new company, while Coterra shareholders will hold the remaining 46% on a fully diluted basis. It is noteworthy that, despite the headquarters relocating to Houston, Texas, the new company will maintain a significant operational presence in Oklahoma City.
Strategic Merger Details
The combined operations are projected to yield production exceeding 1.6 million barrels of oil equivalent per day by the third quarter of 2025, which includes over 550,000 barrels of oil per day. This merger notably emphasizes Devon’s extensive position in the Delaware Basin, which spans nearly 750,000 net acres, projected to deliver 863,000 barrels of oil equivalent per day. This strategic alignment seeks to leverage the strengths of both companies, enhancing operational efficiency and promoting shareholder value through a diverse asset base.
Leadership Structure Post-Merger
The governing body of the new entity will encompass 11 members, with a composition of six directors from Devon and five from Coterra. Clay Gaspar will continue to serve as the President and CEO of Devon, and Tom Jorden, currently the Chairman and CEO of Coterra, will take the position of Non-Executive Chairman of the Board. The combined leadership team will be based in Houston, drawing talent from both companies to guide future operations effectively.
Projected Financial Performance
The merger is a calculated move intended to achieve approximately $1 billion in annual pre-tax synergies by the end of 2027. These gains are anticipated to stem from an optimized capital program, increased operating margins, and reduced corporate costs. Financial analysts project that the transaction will enhance key metrics such as free cash flow and net asset value. Post-merger, the newly formed company plans to declare a quarterly dividend of $0.315 per share and establish a share repurchase authorization exceeding $5 billion, both pending board approval.
Overview of Companies Involved
Devon Energy is recognized as a significant oil and gas producer within the USA, boasting a diversified multi-basin portfolio that significantly includes its world-class positioning within the Delaware Basin. On the other hand, Coterra Energy, headquartered in Houston, operates extensively within prime locations such as the Permian Basin, Marcellus Shale, and Anadarko Basin. The merger merges two companies with a storied history of operational excellence, enabling a powerful shale operator capable of creating resilient value for shareholders through economic cycles.
Conclusion
The merger between Devon Energy and Coterra Energy signals a pivotal moment for Oklahoma City and the wider energy sector. By combining resources and expertise, the new entity aims to enhance operational capacity and shareholder returns. As Oklahoma City continues to cultivate a favorable environment for energy innovation and investment, stakeholders and residents can expect to witness the positive ripple effects of this merger in the local economy. Staying engaged with ongoing developments, supporting local businesses, and fostering entrepreneurship will be crucial as the region navigates this exciting transition.
FAQ
What is the value of the merger between Devon Energy and Coterra Energy?
The merger is valued at approximately $58 billion, based on Devon’s closing price on January 30, 2026.
When is the merger expected to close?
The transaction is expected to close in the second quarter of 2026, subject to regulatory approvals and shareholder votes from both companies.
What will be the ownership distribution after the merger?
Upon completion, Devon shareholders will own approximately 54% of the combined company, with Coterra shareholders holding about 46% on a fully diluted basis.
Where will the combined company’s headquarters be located?
The merged entity will retain the Devon Energy name and be headquartered in Houston, Texas, while maintaining a significant presence in Oklahoma City.
What are the projected production figures for the combined company?
The combined company is projected to have third-quarter 2025 production exceeding 1.6 million barrels of oil equivalent per day, including over 550,000 barrels of oil per day.
Key Features of the Merger
| Feature | Details |
|---|---|
| Merger Value | Approximately $58 billion |
| Ownership Distribution | Devon shareholders: 54%, Coterra shareholders: 46% |
| Headquarters | Houston, Texas, with a significant presence in Oklahoma City |
| Projected Production | Exceeding 1.6 million barrels of oil equivalent per day in Q3 2025 |
| Delaware Basin Position | Nearly 750,000 net acres with production of 863,000 barrels of oil equivalent per day |
| Annual Pre-Tax Synergies | $1 billion by the end of 2027 |
| Quarterly Dividend | $0.315 per share, subject to Board approval |
| Share Repurchase Authorization | Exceeding $5 billion, subject to Board approval |
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