DVN · 10-Q · 2026Q2 · Full report

Acquisition / Partnership / Divestiture

DEVON ENERGY CORP/DE · 2026-08-05 · Importance 71 · Surprise 60 · Contradicted

Devon completed an all-stock merger of equals with Coterra on May 7, 2026, creating a large-cap shale operator with assets in the Permian Basin, Rockies, Eagle Ford, Anadarko Basin and Marcellus Shale. The combination is expected to generate $1.0 billion of sustainable annual pre-tax synergies, with at least $600 million expected to be captured in 2027 and the full run-rate targeted by year-end 2027. Devon assumed approximately $3.5 billion of Coterra debt and allocated $24.9 billion of purchase-price consideration to acquired assets and assumed liabilities. The company also initiated a review of the combined asset portfolio and acquired approximately 16,300 net Permian acres for approximately $2.6 billion through federal and state lease sales during the first six months of 2026.

Key facts

• The Merger purchase price consideration allocated was $24.9 billion. source
• Devon acquired approximately 16,300 net acres for approximately $2.6 billion through a federal lease sale, expanding its position in the Permian Basin. source
• During the first six months of 2026, Devon completed acquisitions of property primarily related to state and federal land sales in the Permian for approximately $2.6 billion. source
• Cash acquired in the Merger was reported as zero in the sources and uses of cash table for the three and six months ended June 30, 2026. source
• On February 1, 2026, Devon entered into the Merger Agreement providing for an all-stock merger of equals with Coterra. source
• The Merger with Coterra successfully closed on May 7, 2026. source
• During the first six months of 2026, Devon received proceeds of $88 million from asset dispositions. source

Impact estimates