Devon Energy, Coterra To Form $58 Billion Shale Behemoth - DVN, CTRA Stocks Slip Pre-Market

Coterra shareholders will receive 0.7 shares of Devon common stock for every Coterra share.

Devon Energy (DVN), on Monday, announced a definitive all-stock merger agreement with Coterra Energy (CTRA) to form a large-cap shale operator with an enterprise value of about $58 billion.

The combined company will be named Devon Energy and will be headquartered in Houston.

As part of the agreement, Coterra shareholders will receive 0.7 shares of Devon common stock for every Coterra share. After the transaction closes, Devon shareholders are expected to own approximately 54% of the combined company, while Coterra shareholders will hold the remaining 46%.

Upon closing, which is expected in the second quarter (Q2) of fiscal 2026, the merged company plans to declare a quarterly dividend of $0.315 per share and establish a new share repurchase authorization of more than $5 billion post-close.

The merged company is expected to produce more than 1.6 million barrels of oil equivalent per day in Q3, including more than 550,000 barrels of oil and 4.3 billion cubic feet of gas daily. The combined company expects to generate about $1 billion in annual pre-tax synergies by the end of 2027.

DVN shares were down 2.9% while CTRA stock fell 3.2% in pre-market trading.

Read updates to this developing story on Stocktwits.<

For updates and corrections, email newsroom[at]stocktwits[dot]com.<