OKLAHOMA CITY — On Tuesday, Devon Energy and Coterra Energy announced they will merge to create a “large-cap shale operator.”
The combined company will be named Devon Energy and will be headquartered in Houston, Texas. This is an “all-stock transition,” which means Devon shareholders will own roughly 54% of the company, and Coterra shareholders will own 46%.
This was approved unanimously by both company’s boards of directors. The deal is set to close in the second quarter of 2026.
While the newly combined company will be headquartered in Texas, there will still be an active presence in Oklahoma City, where Devon Energy was originally headquartered.
“This transformative merger combines two companies with proud histories and cultures of operational excellence, creating a premier shale operator,” said Clay Gaspar, Devon’s President and CEO. “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. Underpinned by our leading position in the best part of the Delaware Basin, and a deep set of complementary assets, we expect to capture annual pre-tax synergies of $1 billion. This will drive higher free cash flow, and greater shareholder returns beyond what either company could achieve alone.”
The new board of directors for Devon Energy will have 11 members — six directors from Devon and five from Coterra. Clay Gaspar will serve as president, and CEO and Ton Jorden will serve as the Non-Executive Chairman of the Board.
A lead independent director will be appointed later by Devon. Both the CEO and executive leadership will be based in Houston.
This merger is set to make Devon Energy one of the largest shale producers in the Delaware Basin and will expand production and profit.
Devon Energy said it “expects to achieve $1.0 billion in annual pre-tax merger synergies by year-end 2027.”
“This combination enhances the Delaware and brings together two premier organizations with complementary cultures rooted in operational excellence, disciplined capital allocation, and data-driven decision-making focused on creating per share value,” said Tom Jorden, Chairman, CEO, and President of Coterra. “The combined company will offer best-in-class rock quality and inventory depth, supported by a balanced commodity mix, leading cost structure, and conservative balance sheet. Devon Energy will be strongly positioned to deliver top-tier capital efficiency gains and consistent profitable per share growth through the commodity cycles.”
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