DVN DEVON ENERGY CORP/DE
Price Chart
Executive Summary
Devon Energy filed pro forma financials reflecting the completion of its acquisition of Coterra Energy on May 7, 2026, using a stock-for-stock merger at a 0.70 exchange ratio. The total consideration was approximately $24.9 billion, creating a combined company with pro forma total assets of $69.5 billion and pro forma net equity of $40.4 billion as of March 31, 2026. Pro forma FY2025 net earnings attributable to Devon were $3.768 billion ($3.24 basic EPS) versus standalone Devon's $2.642 billion ($4.18 basic EPS), reflecting dilution from 532 million new shares issued.
Actionable Insight
The merger closes, creating the largest US pure-play E&P by several metrics. The ~29% pro forma EPS dilution vs Devon standalone was well-telegraphed. Near-term focus shifts to synergy realization (not reflected in these pro formas) and the final purchase price allocation, which may change DD&A. Monitor Q3 2026 for initial combined standalone results and any guidance updates for cost savings or capex plans.
Key Facts
- Merger closed May 7, 2026; Coterra stockholders received 0.70 shares of Devon common stock per Coterra share.
- Total merger consideration valued at approximately $24.9 billion (including $175M share-based replacement rewards).
- Pro forma FY2025 revenue of $24.8 billion, net earnings of $3.768 billion attributable to Devon.
- Pro forma Q1 2026 net earnings of $401 million on $5.744 billion revenue.
- Pro forma basic EPS: $3.24 for FY2025 (vs. standalone Devon $4.18) and $0.35 for Q1 2026 (vs. standalone $0.19).
- Pro forma total shares outstanding: ~1,148 million basic (516M existing + 532M issued).
- Purchase price allocation is preliminary; fair value estimates may change materially.
- Estimated $50 million in transaction costs ($39M net of tax) expensed in pro forma statements.
- Pro forma long-term debt of $10.6 billion (Devon $7.4B + Coterra $3.3B - $19M fair value adjustment).
- Pro forma total equity of $40.4 billion versus standalone Devon equity of $15.4 billion.
Financial Impact
Total deal consideration $24.9 billion; pro forma combined net earnings ~$3.8B vs standalone Devon $2.6B; EPS dilutive from $4.18 to $3.24 on a pro forma basis.
Risk Factors
- Preliminary purchase price allocation subject to material revision; final fair values could meaningfully alter DD&A and deferred taxes.
- Integration risks and potential cost overruns on the $50M estimated transaction costs.
- Synergy targets not quantified in filing; failure to achieve projected savings could pressure margins.
- Combined company has elevated long-term debt (~$10.6B) and is highly exposed to commodity price volatility.
- Pro forma EPS dilutive to Devon standalone shareholders; stock may trade lower if operational synergies disappoint.
Market Snapshot
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-235632 |
| Document: d55276d8k.htm | 0001193125-26-235632 |
| Document: 0001193125-26-235632-index-headers.html | 0001193125-26-235632 |
| Document: 0001193125-26-235632-index.html | 0001193125-26-235632 |
| Document: 0001193125-26-235632.txt | 0001193125-26-235632 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
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Jun 9, 2026
today
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Press Release
| $44.07 awaiting T+5 | awaiting T+5 | — | $44.07 (−0.00%) |
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Jun 5, 2026
4d ago
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8-K
| $45.86 awaiting T+5 | awaiting T+5 | — | $44.07 (−3.90%) |
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May 22, 2026
18d ago
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8-K
| $47.29 $46.31 | ▼ −2.07% | ▼ −3.73% | $44.07 (−6.80%) |
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May 21, 2026
19d ago
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8-K
| $47.09 $44.50 | ▼ −5.50% | ▼ −7.35% | $44.07 (−6.41%) |
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May 21, 2026
19d ago
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Press Release
| $47.09 $44.50 | ▼ −5.50% | ▼ −7.35% | $44.07 (−6.41%) |
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May 15, 2026
25d ago
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Insider Cluster
| $49.67 $45.14 | ▼ −9.12% | ▼ −10.74% | $44.07 (−11.27%) |
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May 15, 2026
25d ago
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Insider Cluster
| $49.67 $45.14 | ▼ −9.12% | ▼ −10.74% | $44.07 (−11.27%) |
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May 7, 2026
4w ago
|
8-K
| $45.60 $47.24 | ▲ +3.60% | ▲ +2.14% | $44.07 (−3.35%) |
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May 5, 2026
5w ago
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8-K
| $46.54 $46.77 | ▼ −0.50% | ▲ +0.63% | $44.07 (+5.30%) |
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May 5, 2026
5w ago
|
425
| $50.89 $46.77 | ▼ −8.10% | ▼ −10.08% | $44.07 (−13.39%) |
US Market Status
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