When Devon Energy and Coterra Energy completed their merger on Thursday, the newly combined company, still called Devon Energy, also announced an $8 billion share buyback program.
It was part of a series of capital return actions announced by Devon Energy Corporation. In making the announcement, Devon said the buyback actions reflect the board’s confidence in the combined company’s free cash flow generation and its commitment to delivering differentiated returns to shareholders through commodity cycles.
“Today’s actions demonstrate our unwavering commitment to returning meaningful capital to shareholders and maintaining a disciplined, investment-grade balance sheet,” said Clay Gaspar, Devon’s President and Chief Executive Officer.
“With the merger now complete and a board approved $8 billion share repurchase authorization representing almost 15% of our current market capitalization, I expect Devon will be active and opportunistic in our buyback program. Devon has the scale, inventory depth, and financial strength to sustain a peer-leading capital return framework while maintaining a fortress balance sheet. We are exceptionally well-positioned to generate resilient free cash flow and deliver differentiated returns through all phases of the commodity cycle.”
DIVIDEND APPROVAL
Devon’s board of directors has approved a quarterly fixed dividend of $0.320 per share, approximately 1.6% above the company’s previously stated expectations of $0.315 per share, and a 33% increase over the prior quarter. The dividend is payable on June 30, 2026 to shareholders of record as of the close of business on June 15, 2026. Devon expects to evaluate growing its dividend on an annual cadence.
SHARE REPURCHASE AUTHORIZATION
The board of directors has approved a new share repurchase authorization of $8 billion, reflecting confidence in the combined company’s free cash flow generation and commitment to returning meaningful capital to shareholders. Repurchases may be made from time to time through open market transactions, privately negotiated transactions or other means in accordance with applicable securities laws. The authorization expires on June 30, 2029, and the timing and amount of repurchases will depend on market conditions, commodity prices, the company’s cash flow, debt reduction goals, and other factors.
Devon expects to provide updated financial and operational guidance reflecting the combined company from May 7, 2026 forward in mid-June 2026.
ABOUT DEVON ENERGY
Devon Energy is a leading oil and gas producer in the U.S. with a premier multi-basin portfolio with assets in the Anadarko Basin, Eagle Ford, Marcellus Shale, Powder River Basin, Williston Basin, anchored by a world-class position in the Delaware Basin. Devon’s disciplined cash-return business model is designed to achieve strong returns, generate resilient free cash flow and return capital to shareholders, while focusing on safe and sustainable operations. For more information, please visit www.devonenergy.com.