Devon Energy and Coterra Energy have signed a definitive all-stock merger agreement that values the combined enterprise at approximately $58 billion. Under the terms, Coterra shareholders will receive 0.70 shares of Devon common stock for each Coterra share, resulting in Devon shareholders owning roughly 54% and Coterra shareholders about 46% on a fully diluted basis upon closing. The merger, unanimously approved by both boards, is expected to finalize in the second quarter of 2026, with the enlarged entity operating under the Devon Energy name and headquartered in Houston while maintaining a significant presence in Oklahoma City.

The transaction creates one of the largest U.S. shale producers, with combined pro forma third-quarter fiscal 2025 production exceeding 1.6 million barrels of oil equivalent per day. This includes over 550,000 barrels of oil and 4.3 billion cubic feet of gas daily. In the core Delaware Basin, the merged company will control nearly 750,000 net acres, driving an anticipated 863,000 barrels of oil equivalent per day production in that play alone—accounting for more than half of total output and cash flow.

The merger targets at least $1 billion in annual pre-tax synergies by the end of 2027 through cost efficiencies and optimized capital allocation. Management expects the deal to be accretive to key per-share metrics, sustained by disciplined spending and resilient free cash flow. The board has outlined a $0.315 quarterly dividend and authorized a share repurchase program in excess of $5 billion, subject to approval, underscoring a commitment to returning capital to shareholders while supporting growth from the combined asset base.