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Devon Energy Profits Slip Amid Mega-Merger Talks
18 Feb
Summary
- Devon Energy reported a decline in fourth-quarter profit and revenue.
- Oil production exceeded guidance, driven by strong well performance.
- The company expects its merger with Coterra Energy to close in Q2 2026.
Devon Energy reported a decline in its fourth-quarter financial performance, with net income and revenue falling compared to the previous year. This comes as the company is in the process of a substantial $21.5 billion all-stock merger with Coterra Energy.
Despite the overall profit decrease, Devon Energy's oil production for the quarter exceeded its guidance, reaching 390,000 barrels a day. This strong performance was bolstered by better-than-expected well results, particularly within the Delaware Basin.
Looking ahead, Devon Energy has projected capital expenditures between $3.5 billion and $3.7 billion for the current year. The anticipated merger with Coterra Energy is slated for completion in the second quarter of 2026, after which the combined entity, to be named Devon Energy, is expected to leverage its enhanced scale to boost margins and free cash flow.
