Devon completes Coterra merger, expands Delaware basin position

(WO) - Devon Energy Corporation and Coterra Energy Inc. have completed their previously announced all-stock merger, creating a large-scale shale producer with a strengthened position in the Delaware basin and expanded operations across several major U.S. resource plays. 

The combined company will continue operating under the Devon Energy name and trade on the NYSE under the ticker symbol DVN. Headquarters will be located in Houston, with a continued operational presence in Oklahoma City.

Devon said the merger creates a “premier shale operator” with increased scale, inventory depth and financial flexibility anchored by a leading acreage position in the core of the Delaware basin.

“This transformative merger marks a defining moment for Devon Energy,” said President and CEO Clay Gaspar. “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 through any commodity cycle.”

The company said it is targeting approximately $1 billion in annual pre-tax synergies by the end of 2027.

Under the terms of the transaction, each share of Coterra common stock was converted into 0.70 shares of Devon common stock. Former Devon shareholders now own approximately 54% of the combined company, while former Coterra shareholders own about 46%.

In addition to its expanded Delaware basin position, the combined company will maintain operations across the Anadarko basin, Eagle Ford, Marcellus and Rockies regions.

Former Coterra Chairman Tom Jorden will serve as non-executive chairman of the combined company’s board.