On Monday, Devon Energy and Coterra Energy announced the two companies have signed a definitive agreement to merge, creating a large-cap shale operator anchored by its position in the Delaware Basin.
The combined company will be named Devon Energy and headquartered in Houston, while maintaining a significant presence in Oklahoma City, Devon Energy says. The two companies say the merger is expected to drive near and long-term per-share growth through improved “capital efficiency and optimized capital allocation.”
Transaction Overview & Shareholder Impact
Under the agreement, Coterra shareholders will receive 0.70 share of Devon common stock for each share of Coterra common stock. Based on Devon’s closing price on Jan. 30, 2026, the deal implies a combined enterprise value of about $58 billion.
Upon completion, Devon shareholders will own about 54% of the combined company, with Coterra shareholders owning about 46% on a fully diluted basis. The transaction was unanimously approved by both companies’ boards and is expected to close in the second quarter of 2026, pending regulatory and shareholder approvals.
Executive Commentary
“This transformative merger combines two companies with proud histories and cultures of operational excellence, creating a premier shale operator,” Devon Energy President and CEO Clay Gaspar said. “We’ve now built a diverse asset base of high-quality, long duration inventory to drive resilient value creation and returns for shareholders through cycles.”
Tom Jorden, chairman, CEO and president of Coterra, said the merger will “enhance the Delaware [Basin]” and bring together complementary cultures rooted in operational excellence.
“The combined company will offer best-in-class rock quality and inventory depth, supported by a balanced commodity mix, leading cost structure, and a conservative balance sheet,” Jorden said. “Devon Energy will be strongly positioned to deliver top-tier capital efficiency gains and consistent profitable per share growth through the commodity cycles.”
Strategic and Financial Benefits
The companies say the merger will create one of the world’s largest shale producers, with pro forma third-quarter 2025 production exceeding 1.6 million barrels of oil equivalent per day. Devon Energy says more than half of total production and cash flow would come from the Delaware Basin, supported by more than 10 years of high-quality inventory.
Additionally, Devon Energy says the combined company expects to achieve $1 billion in annual pre-tax synergies by the end of 2027 through operating efficiencies, optimized capital programs and reduced corporate costs.
Following the merger, Devon Energy says the company plans to declare a quarterly dividend of $0.315 per share and establish a new share repurchase authorization exceeding $5 billion, subject to board approval.
Governance and Leadership
After closing, the board will consist of 11 members, including six from Devon and five from Coterra. Gaspar will serve as president and CEO, while Jorden will become non-executive chairman of the board. Executive leadership will be based in Houston and include leaders from both companies.
