Devon Unveils $8B Buyback and 20% Dividend Hike after $24.4B Coterra Deal

Devon Energy officially closed its $24.4 billion acquisition of Coterra Energy, creating one of the largest independent oil and gas producers in the U.S. The all-stock transaction exchanges Coterra shares for Devon stock and consolidates operations across key shale basins.

The company announced an $8 billion share repurchase program, to be executed over the next 12 months through open-market purchases and accelerated buyback agreements. This program represents roughly 10% of pro-forma market capitalization and underscores management’s confidence in free cash flow generation.

Alongside the buyback, Devon raised its quarterly dividend by 20%, boosting annual dividend payments by about $200 million. The increase brings the quarterly payout to $0.30 per share and aligns with the firm’s commitment to returning capital as cash flow grows.

Management projects combined free cash flow of over $5 billion in the first full year post-merger, targeting net debt reduction and an investment-grade credit rating. The balance between buybacks, dividends and debt paydown aims to optimize shareholder returns while maintaining financial flexibility.