Devon Energy Shares Rise 29%; Coterra Merger to Deliver $1B Synergies
Devon Energy shares have gained 29% over the past six months, outperforming the industry’s 14% and sector’s 26.7% returns, while oil prices approached $90 per barrel. The company’s all-stock merger with Coterra Energy is set to create a 1.6 million Boe/d producer and deliver $1 billion in annual synergies by 2027.
1. Share Performance and Oil Prices
Devon Energy shares have surged 29% in the past six months, outpacing the oil & gas exploration and production industry’s 14%, the sector’s 26.7% and the S&P 500’s 6.9% return, while crude oil approached $90 per barrel, bolstering momentum among U.S. and Canadian producers.
2. Asset Portfolio and Cost Management
The company’s high-quality multi-basin assets in the Delaware Basin, Eagle Ford, Anadarko, Rockies and Powder River are driving improved well productivity, while ongoing cost-management, debt reduction and strategic capital investments have lowered breakeven costs across its portfolio.
3. Mid-2026 Coterra Energy Merger
Devon Energy will complete an all-stock merger with Coterra Energy in mid-2026, creating a 1.6 million Boe/d combined producer with nearly 750,000 net acres in the Delaware Basin, and targeting $1 billion in annual pre-tax synergies by year-end 2027 through operational optimization.
4. Valuation and Earnings Outlook
Trading at a trailing EV/EBITDA of 5.08× versus the industry’s 11.88× and boasting a 16.28% ROE compared with 16.18% for peers, the stock has still seen 2026 and 2027 EPS estimates fall 18.2% and 16.6% over the past 60 days.