On May 4 2026, shareholders of Devon Energy and Coterra Energy voted to approve all proposals necessary to consummate their all‑stock merger, clearing the final shareholder hurdle for the transaction.
The merger, valued at approximately $58 billion, is expected to close around May 7 2026. Upon completion, Devon shareholders will own about 54 % of the combined company and Coterra shareholders 46 %. The deal will combine Devon’s Permian, Marcellus and Anadarko assets with Coterra’s multi‑basin portfolio, creating a larger, diversified independent oil and gas producer with a balanced exposure to liquids and natural gas.
The combined entity aims to generate roughly $1 billion in annual pre‑tax synergies by 2027, driven by cost efficiencies, scale, and complementary operational expertise. Management highlighted the strategic fit: "This is an important milestone as we move toward combining our complementary, world‑class asset bases to create a premier, large‑cap shale operator with greater scale, enhanced margins, and an increased ability to accelerate free cash flow growth and shareholder returns," said Clay Gaspar, President and CEO of Devon. "Together, we will leverage our complementary portfolios and proven operational expertise to capture meaningful capital and operational synergies and deliver sustainable long‑term value creation for all shareholders," added Tom Jorden, CEO of Coterra.
Financial context underscores the rationale for the merger. Coterra reported Q1 2025 net income of $516 million, or $0.68 per share, on revenue of $1.82 billion. Devon’s Q1 2025 results included revenue of $4.452 billion and earnings of $494 million, or $0.77 per share. These figures illustrate the complementary scale and performance profiles that the merger seeks to unify.
The approval positions the new company to focus on integration and execution of a growth strategy that leverages the combined asset base, operational synergies, and a stronger balance sheet to capitalize on favorable commodity markets.
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