Devon Energy and Coterra Energy have signed a unanimous board-approved agreement to merge in an all-stock transaction that creates the second-largest U.S. independent exploration and production company. Under the terms, each Coterra share converts into 0.70 Devon shares, resulting in a combined enterprise value of approximately $58 billion. The deal is expected to close in the second quarter of 2026, subject to customary regulatory and shareholder approvals, and will position the combined entity to exceed pro forma production of 1.6 million barrels of oil equivalent per day, including more than 550,000 barrels of oil and over 4.3 billion cubic feet of gas daily, making it a top-tier producer in the Delaware Basin.

Following closing, Devon shareholders will own roughly 54% of the combined company, with Coterra shareholders holding the remaining 46% on a fully diluted basis. The new Devon Energy, headquartered in Houston with a continued office in Oklahoma City, will control nearly 750,000 net acres in the Delaware Basin, expected to account for over half of total production and cash flow. Management projects $1 billion in annual pre-tax synergies by the end of 2027, accretive per-share metrics and a disciplined capital allocation framework that includes a planned quarterly dividend of $0.315 per share and a share repurchase program exceeding $5 billion, subject to board approval.