OKLAHOMA CITY (OBV) — Devon Energy and Coterra Energy on Monday announced a definitive agreement to merge in an all-stock transaction that would create one of the nation’s most significant energy companies, combining two large shale producers with complementary assets and operations.
The transaction, valued at approximately $58 billion in combined enterprise value, will result in a company operating under the Devon Energy name, headquartered in Houston while maintaining a significant presence in Oklahoma City. Devon shareholders are expected to own roughly 54 percent of the combined company, with Coterra shareholders owning about 46 percent on a fully diluted basis. The deal is expected to close in the second quarter of 2026, pending regulatory and shareholder approvals.
The merger brings together extensive acreage positions in the Delaware Basin, along with assets in the Marcellus and Anadarko basins, creating a scaled operator with more than 10 years of high-quality drilling inventory and projected annual pre-tax synergies of $1 billion by year-end 2027. Company leaders said those efficiencies will be driven by operational optimization, technology integration, and streamlined corporate costs.
Devon President and CEO Clay Gaspar described the deal as a strategic step to strengthen long-term value creation and shareholder returns, while Coterra Chairman and CEO Tom Jorden emphasized the companies’ shared culture of disciplined capital allocation and operational excellence.
For Oklahoma City, where Devon was founded and has long maintained its corporate headquarters, the announcement represents a significant shift — but not a departure.
“Today marks a significant moment for Oklahoma City and the state of Oklahoma. Devon Energy has been a transformative force not only for our city, but for the entire state, strengthening our economy, shaping our skyline, and setting a high standard for corporate citizenship through its deep investment in communities across Oklahoma. Devon’s influence reaches far beyond energy, and its legacy here is enduring,” said Chad Warmington, president and CEO of The State Chamber of Oklahoma.
“We congratulate Devon and Coterra Energy on a historic merger that will create one of the most prominent energy companies in the nation. Oklahoma City is Devon’s birthplace, and while this announcement marks a new chapter, we are optimistic that Oklahoma City will remain an important part of Devon’s future.”
Under the terms of the agreement, the combined company will retain a substantial operational and employment footprint in Oklahoma City, even as executive leadership is based in Houston. Devon executives said the company will continue to leverage its Oklahoma workforce, infrastructure, and institutional knowledge as part of its broader U.S. operations.
The merged company is expected to produce more than 1.6 million barrels of oil equivalent per day on a pro forma basis, supported by a balanced mix of oil, natural gas, and natural gas liquids. It also plans to maintain a strong balance sheet, investment-grade credit profile, and an accelerated capital return program that includes a planned quarterly dividend and a new share repurchase authorization exceeding $5 billion, subject to board approval.
The boards of both companies unanimously approved the transaction. If completed as planned, the deal would mark one of the largest energy mergers of the year and further consolidate the U.S. shale sector amid continued pressure to scale efficiently, deploy technology, and generate durable free cash flow through commodity cycles.
