Devon Energy and Coterra Energy have completed their all-stock merger, forming a single entity under the Devon Energy name.
The companies initially agreed to merge in February 2026, creating a business with an estimated combined enterprise value of $58bn.
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Following approval by shareholders of both companies at special meetings on 4 May, the merger establishes a large shale operator.
The headquarters of the new entity will reside in Houston, Texas, US, with operations also maintaining a significant presence in Oklahoma City.
According to the terms of the agreement, each Coterra share has been converted to 0.70 shares of Devon common stock, with cash issued for any fractional shares. Coterra’s common stock has ceased trading on the New York Stock Exchange.
Upon completion, Devon shareholders hold roughly 54% of the combined company, with former Coterra shareholders owning approximately 46% on a fully diluted basis.
Further details regarding the stock exchange were sent to registered Coterra shareholders.
Devon president and CEO Clay Gaspar said: “This transformative merger marks a defining moment for Devon Energy. 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 $1bn 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.”
Devon non-executive board chairman Tom Jorden said: “I want to thank the employees of both companies for their extraordinary efforts to bring this combination to completion. 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 organisation’s disciplined capital allocation, operational expertise and commitment to shareholder returns will drive enduring value creation.”
The board of directors of the combined company will include 11 members, comprised of six former Devon directors and five from Coterra.
Both companies’ management teams cited breadth of experience and varied backgrounds as attributes of the newly formed leadership group.
In late 2024, Devon Energy completed its acquisition of Grayson Mill Energy assets in a deal valued at $5bn in cash and stock.
