Devon & Coterra Transformative Merger February 2, 2026 Transformative Merger Creates Premier Shale Operator | Must-own, large-cap independent with $58 billion pro | • | Large-Cap Shale | forma enterprise value1 | | | | --- | --- | --- | --- | --- | --- | | Powerhouse | • | Resilience anchored by high-margin L48 portfolio & | balanced commodity mix | | | | • | Underpins over 50% of enterprise-wide production | | | | | | Franchise | and free cash flow | Delaware Asset | | | | | >10 years of highly competitive ...

Core Viewpoint - Devon Energy and Coterra Energy have announced a merger to create a leading shale operator with a combined enterprise value of approximately $58 billion [1] Group 1: Merger Details - The merger will result in a company with a pro-forma production exceeding 1.6 million barrels of oil equivalent (Boe) per day by the third quarter of 2025, including over 550,000 barrels of oil per day and 4.3 billion cubic feet of gas per day [2] - The new entity will be named Devon Energy and will be headquartered in Houston, while also maintaining a significant presence in Oklahoma City [2] - Coterra shareholders will receive a fixed exchange ratio of 0.70 share of Devon common stock for each share of Coterra common stock, resulting in Devon shareholders owning about 54% and Coterra shareholders approximately 46% of the combined company [4] Group 2: Operational Synergies and Efficiency - The merger is expected to generate $1 billion in annual pre-tax synergies [2] - The combined company will have the largest inventory in the Delaware basin with a breakeven cost below $40 per barrel, enhancing its drilling opportunities [3] - The new entity will also exhibit top-tier capital efficiency across various basins, including Permian, Anadarko, Eagle Ford, Marcellus, and the Rockies [4] Group 3: Timeline and Approvals - The transaction has been unanimously approved by the boards of directors of both companies and is expected to close in the second quarter of 2026, pending regulatory approvals and customary closing conditions [5]

Note: See appendix for non-GAAP. 1) As of 1/30/2026. 2) Gross operated inventory locations per Enverus, divided by gross operated wells spud in 2025. 3) Subject to board approval. 4) Pro forma, as of 9/30/2025. Liquidity assumes $3.0 bn revolver remains outstanding. 5) Source: Factset consensus. | 2 Devon & Coterra Transformative Merger February 2, 2026 Transformative Merger Creates Premier Shale Operator | Must-own, large-cap independent with $58 billion pro | • | Large-Cap Shale | forma enterprise value1 ...

Devon Energy Corp. agreed to acquire Coterra Energy Inc. for about $21.4 billion in stock to create one of the world’s biggest shale companies as dwindling drilling sites spur producers to consolidate. The deal calls for Coterra stockholders to receive 0.7 Devon shares for each share they own, according to a statement Monday. It amounts to a roughly 12% premium for Coterra investors based on the stock value in mid-January before news broke that the companies were in talks, but it’s a slight discount to Fr ...

Devon Energy And Coterra Create Shale Giant With $58 Billion Merger | Investor's Business DailyBREAKING: [Futures Off Lows, Bitcoin Dives To Lowest Since 2024]---Devon Energy (DVN) and Coterra Energy (CTRA) announced before Monday's stock market open they will merge in an all-stock transaction, which will create a shale oil and gas giant valued at about $58 billion. The two companies said Monday that the new entity will be named Devon Energy and headquartered in Houston. The merger is expected to bring abou ...

Devon Energy and Coterra Energy agreed to merge in a roughly $58 billion all-stock deal, including debt. ...

Core Viewpoint - U.S. shale producers Devon Energy and Coterra Energy are merging in a $58 billion all-stock deal to form one of the largest independent shale producers in the United States [1] Company Summary - The merger will combine the strengths of both companies, enhancing their operational capabilities and market presence in the shale industry [1] - The all-stock nature of the deal indicates a strategic move to consolidate resources and improve financial stability [1] Industry Summary - This merger reflects a trend in the shale industry towards consolidation as companies seek to optimize production and reduce costs amid fluctuating oil prices [1] - The creation of a larger independent shale producer may impact competition and market dynamics within the U.S. energy sector [1]

Core Viewpoint - Devon Energy and Coterra Energy have announced a definitive agreement to merge in an all-stock transaction, creating a leading large-cap shale operator with a strong asset base in the Delaware Basin [1][2] Transaction Details - Coterra shareholders will receive a fixed exchange ratio of 0.70 shares of Devon common stock for each share of Coterra common stock, implying a combined enterprise value of approximately $58 billion based on Devon's closing price on January 30, 2026 [4] - Upon completion, Devon shareholders will own approximately 54% and Coterra shareholders will own approximately 46% of the combined company [4][5] Transaction Benefits - The merger is expected to unlock $1 billion in annual pre-tax synergies, enhancing free cash flow and shareholder returns [2][8] - The combined company will have pro forma production exceeding 1.6 million barrels of oil equivalent (Boe) per day, including over 550 thousand barrels of oil per day and 4.3 billion cubic feet of gas per day [12] - The Delaware Basin will account for more than 50% of the combined company's total production and cash flow, supported by over 10 years of top-tier inventory [12] - The transaction is expected to be accretive to key per-share financial measures, including free cash flow and net asset value [8][12] Governance and Leadership - The board of directors will consist of 11 members, with six from Devon and five from Coterra, and Clay Gaspar will serve as President and CEO [9] Advisors - Evercore is the financial advisor for Devon, while Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are financial advisors for Coterra [10]

Core Viewpoint - Devon Energy Corporation (NYSE:DVN) is recognized as one of the top American oil and gas stocks to invest in, with recent price target increases from analysts indicating positive market sentiment despite macroeconomic pressures [1][2]. Group 1: Analyst Ratings and Price Targets - Wells Fargo raised its price target for Devon Energy from $37 to $43 while maintaining an 'Overweight' rating, citing pressures from rising output in the oil market [3]. - Susquehanna increased its price target for Devon Energy from $42 to $45, reflecting a 13% upside potential from current levels, while keeping a 'Positive' rating [4]. Group 2: Market Conditions and Price Assumptions - The oil market is currently facing downward pressure due to global oversupply and softer demand, leading to a reduction in the 2026 WTI price assumption from $65 to $60 per barrel by Susquehanna [5]. - Despite the challenges in the oil market, there is a bullish long-term outlook for natural gas, driven by increasing power demand from data centers and electrification [5].

Market Movements - US stock index futures are all down, with Dow futures down 0.32%, S&P 500 futures down 0.37%, and Nasdaq futures down 0.49% [1] - European indices show positive movement, with Germany's DAX up 1.04%, UK's FTSE 100 up 0.45%, France's CAC40 up 0.76%, and the Euro Stoxx 50 up 1.04% [2][3] - WTI crude oil is down 0.61% at $65.02 per barrel, while Brent crude oil is down 0.73% at $69.08 per barrel [3][4] Market News - Trump's nomination of Kevin Warsh for the Federal Reserve chair may face hurdles due to ongoing investigations, with some Republican senators indicating they will block nominations until legal issues are resolved [5] - The financial market perceives Warsh as a more hawkish candidate compared to current chair Powell, potentially leading to tighter monetary policies [5] - Gold and silver prices have seen significant declines, with gold dropping over 5% to $5,099 per ounce and silver down over 12% to $101.4 per ounce, raising concerns about the sustainability of recent price increases [6] - The temporary agreement between Trump and Senate Democrats aims to prevent a government shutdown, although further negotiations are ongoing [6] Investment Strategies - Bank of America indicates that global stock markets are flashing sell signals, with 89% of MSCI stock index prices above their 50-day and 200-day moving averages, surpassing the 88% threshold considered a sell signal [7] - Jeff Gundlach, known as the "new bond king," advises avoiding the US market due to high inflation and a weakening dollar, recommending a 30%-40% allocation to non-US stocks, particularly emerging markets [8] Company News - Apple reported record Q1 earnings of $143.8 billion, a 16% year-over-year increase, driven by a 23% increase in iPhone revenue to $85.3 billion, with significant growth in the Greater China region [9] - Apple CEO Tim Cook announced a partnership with Google to develop a more personalized Siri, while also warning of supply constraints due to 3nm chip production limitations [10] - Sandisk's Q2 revenue is projected to grow 61.2% to $3.03 billion, exceeding market expectations, with a strong performance in data center and consumer segments [11] - Western Digital reported a 25% increase in revenue to $3.02 billion, with net profit surging 296%, driven by AI infrastructure demand [12] - KLA Corporation's Q2 revenue grew 7.2% to $3.3 billion, benefiting from AI infrastructure expansion, but concerns about valuation risks have emerged [13] - Visa's Q1 adjusted earnings were $3.17 per share, a 15% increase, with total payment volume reaching $3.87 trillion, exceeding expectations [14] - ExxonMobil's Q4 adjusted net profit was $1.71 per share, driven by increased oil production and refining margins, while Chevron's Q4 adjusted earnings were $1.52 per share, with plans for production growth [15][16] - Coterra Energy and Devon Energy are reportedly in talks for a potential merger, which could be one of the largest oil and gas deals in recent years [17]