Devon Energy Corporation and Coterra Energy Inc. announced the successful completion of their previously announced all-stock merger, creating a premier large-cap shale operator with a high-quality asset base anchored by a leading position in the economic core of the Delaware Basin.
The transaction was approved by stockholders of both companies at special meetings held on May 4, 2026. The combined company will be headquartered in Houston, while maintaining a significant presence in Oklahoma City.
“This transformative merger marks a defining moment for Devon Energy,” said Clay Gaspar, Devon’s President and Chief Executive Officer. “We have brought together two companies with proud histories and cultures of operational excellence to create a premier shale operator with the scale, inventory depth and financial strength to deliver differentiated returns for shareholders through any commodity cycle. With a leading Delaware Basin position and $1 billion in identified annual pre-tax synergies targeted by year-end 2027, Devon is exceptionally well-positioned to generate resilient free cash flow and return meaningful capital to shareholders for years to come.”
“I want to thank the employees of both companies for their extraordinary efforts to bring this combination to completion,” said Tom Jorden, Non-Executive Chairman of the Board. “Coterra’s world-class assets, technical capabilities and people now strengthen Devon in a way that creates a company greater than the sum of its parts. I am confident that the combined organization’s disciplined capital allocation, operational expertise and commitment to shareholder returns will drive enduring value creation.”
In accordance with the Merger Agreement, each share of Coterra common stock has been converted into the right to receive 0.70 shares of Devon common stock, with cash paid in lieu of any fractional shares. Coterra common stock will no longer be listed for trading on the NYSE. Devon shareholders before the merger own approximately 54 percent of the combined company and former Coterra shareholders own approximately 46 percent on a fully diluted basis.
