Devon Energy closes all-stock merger with Coterra, sets Houston headquarters
Devon Energy and Coterra Energy have completed their previously announced all-stock merger, creating a large-cap shale operator anchored in the Delaware Basin. The combined company will operate under the Devon Energy name, continue trading on the New York Stock Exchange as DVN, and be headquartered in Houston while maintaining a significant presence in Oklahoma City.
Shareholders of both companies approved the transaction at special meetings on May 4, 2026. The companies said the tie-up brings together complementary assets and scale, positioning the new Devon to navigate commodity cycles and prioritize shareholder returns.
Under the terms of the merger agreement, each share of Coterra common stock was converted into the right to receive 0.70 shares of Devon common stock, with cash paid in lieu of fractional shares. Coterra’s stock will no longer be listed on the NYSE. Following the merger, legacy Devon shareholders own approximately 54 percent of the combined company and former Coterra shareholders own approximately 46 percent on a fully diluted basis.
The companies said additional information on exchanging Coterra shares was mailed to registered holders. “This transformative merger marks a defining moment for Devon Energy,” said Clay Gaspar, Devon’s president and chief executive officer.
He said the combined company’s leading Delaware Basin position and $1 billion in identified annual pre-tax synergies targeted by year-end 2027 leave it “exceptionally well-positioned” to generate resilient free cash flow and return capital.
Tom Jorden, non-executive chairman of the board, said Coterra’s assets and technical capabilities strengthen the company in a way that is “greater than the sum of its parts,” adding that disciplined capital allocation and operational expertise would guide the integration.
The board of directors of the combined company consists of 11 members, six from Devon and five from Coterra, according to the announcement. The companies said integration efforts will focus on capturing the targeted synergies and executing a capital-return strategy anchored in their Delaware Basin portfolio.