MergerMay 5, 2026, 05:02 PM
Devon Energy Q1 Results Strong; Coterra Merger Approved, Closing May 7
AI Summary
Devon Energy reported strong first-quarter 2026 financial and operational results, with oil production at the top end of guidance and capital investment below guidance. The company generated $1.7 billion in operating cash flow and $816 million in free cash flow. Shareholders of both Devon and Coterra Energy approved the transformative merger, which is now expected to close around May 7, 2026. Following the merger, Devon plans a new share repurchase authorization exceeding $5 billion and an increased quarterly fixed dividend of $0.315 per share, both subject to Board approval.
Key Highlights
- Coterra Energy merger approved by shareholders, expected to close around May 7, 2026.
- Q1 2026 net earnings were $120 million, or $0.19 per diluted share.
- Q1 2026 core earnings were $641 million, or $1.04 per diluted share.
- Generated $1.7 billion operating cash flow and $816 million free cash flow in Q1.
- Q1 oil production averaged 387,000 barrels per day, reaching top-end of guidance.
- Q1 capital investment was $848 million, 6% below midpoint guidance.
- Anticipates new share repurchase authorization exceeding $5 billion and a $0.315/share fixed dividend post-merger.
- Expected to fully achieve $1 billion annual pre-tax free cash flow improvement target ahead of schedule.