OKLAHOMA CITY and HOUSTON, Feb. 02, 2026 (GLOBE NEWSWIRE) — Devon Energy (“Devon”) (NYSE: DVN) and Coterra Energy (“Coterra”) (NYSE: CTRA) today announced the signing of a definitive agreement to merge in an all-stock transaction.
The combination will create a leading large-cap shale operator with a high-quality asset base anchored by a premier position in the economic core of the Delaware Basin.
Key Highlights
- Transformative merger combines high-quality assets and complementary technical capabilities
- Creates a scaled, large-cap E&P with leading inventory duration and durable free cash flow
- More than 10 years of high-quality inventory in the Delaware Basin
- $1.0 billion in identified pre-tax synergies
- Enhanced capital efficiency through technology integration
- Accretive to free cash flow and net asset value
- Planned quarterly dividend of $0.315 per share
- New share repurchase authorization exceeding $5 billion
- All-stock transaction strengthens balance sheet
Transaction Details
Coterra shareholders will receive 0.70 shares of Devon common stock for each Coterra share.
Based on Devon’s closing price on January 30, 2026, the transaction implies a combined enterprise value of approximately $58 billion.
The transaction is expected to close in the second quarter of 2026, subject to regulatory and shareholder approvals.
CEO Commentary
“This transformative merger combines two companies with proud histories and cultures of operational excellence,” said Clay Gaspar, President and CEO of Devon.
“This combination enhances the Delaware and brings together two premier organizations,” said Tom Jorden, Chairman, CEO, and President of Coterra.
Transaction Benefits
- Premier large-cap shale operator
- Expanded Delaware Basin footprint
- Significant cost synergies
- Technology-focused leadership
- Accretive financial performance
- Accelerated shareholder returns
- Strong balance sheet
Governance and Leadership
The post-merger board will consist of 11 members. Clay Gaspar will serve as President and CEO, and Tom Jorden will serve as Non-Executive Chairman.
Advisors
Evercore and Skadden are advising Devon.
Goldman Sachs and J.P. Morgan are advising Coterra.
Conference Call and Webcast
The companies will host a conference call on February 2, 2026 at 7:30 a.m. CT.
Webcast access: www.devonenergy.com |
www.coterra.com
About the Companies
Devon Energy
Devon Energy is a leading U.S. oil and gas producer with a diversified multi-basin portfolio.
Coterra Energy
Coterra is a premier exploration and production company based in Houston, Texas.
Investor and Media Contacts
Devon Investor: Chris Carr (405-228-2496)
Coterra Investor: Daniel Guffey (281-589-4875)
Devon Media: Michelle Hindmarch (405-552-7460)
Coterra Media: Stephen Flaherty (281-589-4826)
Non-GAAP Disclosures
This press release includes non-GAAP financial measures. These measures are not substitutes for GAAP results.
Additional Information
Devon will file a registration statement on Form S-4 with the SEC. Investors are encouraged to read all related filings.
Participants in the Solicitation
Devon and Coterra directors and officers may be considered participants in the proxy solicitation.
No Offer or Solicitation
This communication does not constitute an offer to sell or solicit securities.
Forward-Looking Statements
This release contains forward-looking statements subject to risks and uncertainties that may cause actual results to differ materially.
Neither Devon nor Coterra undertakes any obligation to update these statements.
