- Devon Coterra Merger Reshapes Shale Scale And Capital Returns
May 12, 2026
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Devon Energy (NYSE:DVN) has closed its all stock merger with Coterra Energy, creating a large cap shale operator with expanded scale. The combined company announced an $8b share repurchase program alongside a 33% increase in its fixed dividend. Management outlined targeted synergies and capital return priorities that reshape the company’s operating and financial profile.
For shareholders, the timing of this deal comes after a strong period for NYSE:DVN, with the stock up 23.4% year to date, 42.9% over the past year, and 121.1% over five years from a last close of $46.73. Those gains frame the Coterra merger as a meaningful new chapter, with a larger shale footprint and a capital return plan that now includes a sizeable buyback alongside a higher fixed dividend.
The enlarged business will run with a different operating structure, asset mix, and capital allocation approach. This could shift how investors think about risk, income, and total return potential from the stock. The blend of scale, synergy targets, and explicit capital return commitments gives investors new data points to watch as the combined company begins to report results and refine its payout and reinvestment balance.
Stay updated on the most important news stories for Devon Energy by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Devon Energy.NYSE:DVN Earnings & Revenue Growth as at May 2026
Is Devon Energy's dividend sustainable? Check out what every dividend investor needs to know in our dividend analysis.
Quick Assessment
✅ Price vs Analyst Target: At US$46.73 vs an analyst target of US$59.42, the stock trades about 21% below consensus. ✅ Simply Wall St Valuation: The shares are flagged as trading about 69.1% below an estimated fair value. ❌ Recent Momentum: The stock is down 2.2% over the past 30 days.
To better assess whether it may be the right time to buy, sell or hold Devon Energy, head to Simply Wall St's company report for the latest analysis of Devon Energy's Fair Value.
Key Considerations
📊 The all stock Coterra merger, larger shale footprint, and US$8b buyback together reshape how you might think about Devon Energy’s scale and capital returns. 📊 Keep an eye on synergy delivery, execution on the repurchase program, and how the 33% higher fixed dividend fits with cash flows and reinvestment needs. ⚠️ The company still carries flagged risks, including an unstable dividend track record, a high level of debt, and past shareholder dilution.
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Dig Deeper
For the full picture including more risks and rewards, check out the complete Devon Energy analysis. Alternatively, you can check out the community page for Devon Energy to see how other investors believe this latest news will impact the company's narrative.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include DVN.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- Here’s Why Devon Energy (DVN) Is One of the Most Undervalued High Quality Stock
May 10, 2026
Devon Energy Corporation (NYSE:DVN) trades at a forward price to earnings ratio of 9.52, well below the price to earnings ratio of the S&P 500, which stands at 26.05. Moreover, 78% of the 32 analysts covering the stock have a Buy rating on the stock, making it one of our Most Undervalued High Quality Stocks to Buy Now.
On May 5, Raymond James upgraded Devon Energy Corporation (NYSE:DVN) from Outperform to Strong Buy and also raised the price target from $62 to $72. The upgrade follows the closing of the company’s merger with Coterra Energy. The analyst views it as an important development as it will open several ways for the company to close its valuation gap with its peers.
Moreover, looking ahead, the firm is confident in the company’s ability to optimize its portfolio. Raymond James described Devon as operating from a position of strength, emphasizing that management has numerous levers available to drive value creation.
That said, Devon Energy Corporation (NYSE:DVN) released its fiscal Q1 2026 earnings on May 5. The company posted $3.81 billion in revenue, down 14.49% year-over-year and short of expectations by $138.66 million. The GAAP EPS of $0.19 also missed expectations by $0.88.
Devon Energy Corporation (NYSE:DVN) is an independent U.S.-based energy company. It focuses on the exploration, development, and production of oil, natural gas, and natural gas liquids (NGLs). The company specializes in horizontal drilling and hydraulic fracturing. Its core operations are in the Delaware Basin, Eagle Ford, Anadarko, Williston, and Powder River basins.
While we acknowledge the potential of DVN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 10 Best Stocks to Buy While the Market Is Down and 14 Stocks That Will Double in the Next 5 Years.
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- Devon Energy completes $58bn merger with Coterra Energy
May 8, 2026
Devon Energy and Coterra Energy have completed their all-stock merger, forming a single entity under the Devon Energy name.
The companies initially agreed to merge in February 2026, creating a business with an estimated combined enterprise value of $58bn.
Following approval by shareholders of both companies at special meetings on 4 May, the merger establishes a large shale operator.
The headquarters of the new entity will reside in Houston, Texas, US, with operations also maintaining a significant presence in Oklahoma City.
According to the terms of the agreement, each Coterra share has been converted to 0.70 shares of Devon common stock, with cash issued for any fractional shares. Coterra’s common stock has ceased trading on the New York Stock Exchange.
Upon completion, Devon shareholders hold roughly 54% of the combined company, with former Coterra shareholders owning approximately 46% on a fully diluted basis.
Further details regarding the stock exchange were sent to registered Coterra shareholders.
Devon president and CEO Clay Gaspar said: “This transformative merger marks a defining moment for Devon Energy. We have brought together two companies with proud histories and cultures of operational excellence to create a premier shale operator with the scale, inventory depth and financial strength to deliver differentiated returns for shareholders through any commodity cycle.
“With a leading Delaware Basin position and $1bn in identified annual pre-tax synergies targeted by year-end 2027, Devon is exceptionally well-positioned to generate resilient free cash flow and return meaningful capital to shareholders for years to come.”
Devon non-executive board chairman Tom Jorden said: “I want to thank the employees of both companies for their extraordinary efforts to bring this combination to completion. Coterra’s world-class assets, technical capabilities and people now strengthen Devon in a way that creates a company greater than the sum of its parts.
“I am confident that the combined organisation’s disciplined capital allocation, operational expertise and commitment to shareholder returns will drive enduring value creation.”
The board of directors of the combined company will include 11 members, comprised of six former Devon directors and five from Coterra.
Both companies’ management teams cited breadth of experience and varied backgrounds as attributes of the newly formed leadership group.
In late 2024, Devon Energy completed its acquisition of Grayson Mill Energy assets in a deal valued at $5bn in cash and stock.
"Devon Energy completes $58bn merger with Coterra Energy" was originally created and published by Offshore Technology, a GlobalData owned brand.
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The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
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- Devon Launches $8 Billion Buyback After Coterra Merger
May 8, 2026
Devon Energy has approved an $8 billion share repurchase program and increased its quarterly dividend after completing its all-stock merger with Coterra Energy, underscoring confidence in the combined company’s cash flow outlook and balance sheet strength.
Houston-based Devon Energy announced Thursday that its board authorized a new $8 billion buyback program, equivalent to nearly 15% of the company’s current market capitalization, alongside a quarterly fixed dividend of $0.320 per share.
The dividend represents a 33% increase from the prior quarter and came in slightly above the company’s previously communicated expectation of $0.315 per share. The payout will be made on June 30 to shareholders of record as of June 15.
The capital return measures follow the completion of Devon’s merger with Coterra Energy earlier Thursday, creating a larger U.S. shale producer with a multi-basin footprint spanning the Delaware Basin, Eagle Ford, Anadarko Basin, Williston Basin, Powder River Basin, and Marcellus Shale.
Chief Executive Officer Clay Gaspar said the enlarged company intends to remain “active and opportunistic” in executing share repurchases while maintaining an investment-grade balance sheet.
The newly approved repurchase authorization runs through June 30, 2029, and gives Devon flexibility to buy back shares through open-market purchases and private transactions depending on commodity prices, market conditions, debt reduction priorities, and free cash flow generation.
The announcement signals confidence among U.S. shale producers that consolidation can support stronger shareholder returns even amid volatile oil and natural gas prices. In recent years, major independent producers have increasingly prioritized dividends and buybacks over aggressive production growth as investors demand capital discipline.
The Devon-Coterra tie-up further consolidates acreage across some of the most prolific U.S. shale basins, particularly the Permian’s Delaware Basin, which remains central to long-term North American oil supply growth. The merger also broadens the combined company’s exposure to natural gas markets through Coterra’s Marcellus assets at a time when LNG export growth is expected to increase U.S. gas demand over the coming decade.
Devon said it expects to release updated operational and financial guidance for the combined company in mid-June.
By Charles Kennedy for Oilprice.com
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- W&T Offshore (WTI) Reports Break-Even Earnings for Q1
May 7, 2026
W&T Offshore (WTI) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of $0.02. This compares to a loss of $0.13 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -100.00%. A quarter ago, it was expected that this independent oil and gas company would post a loss of $0.09 per share when it actually produced a loss of $0.14, delivering a surprise of -55.56%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
W&T, which belongs to the Zacks Oil and Gas - Exploration and Production - United States industry, posted revenues of $150.02 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 9.52%. This compares to year-ago revenues of $129.87 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
W&T shares have added about 134.4% since the beginning of the year versus the S&P 500's gain of 7.6%.
What's Next for W&T?
While W&T has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for W&T was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.08 on $135.98 million in revenues for the coming quarter and -$0.11 on $543.72 million in revenues for the current fiscal year.
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Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Exploration and Production - United States is currently in the top 4% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Coterra Energy (CTRA), another stock in the same industry, has yet to report results for the quarter ended March 2026.
This independent oil and gas company is expected to post quarterly earnings of $0.89 per share in its upcoming report, which represents a year-over-year change of +11.3%. The consensus EPS estimate for the quarter has been revised 11.7% higher over the last 30 days to the current level.
Coterra Energy's revenues are expected to be $2.05 billion, up 7.9% from the year-ago quarter.
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This article originally published on Zacks Investment Research (zacks.com).
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- Chris Davis Significantly Reduces Stake in Applied Materials Inc, Impacting Portfolio by -3.47%
May 7, 2026
This article first appeared on GuruFocus.
Insight into Chris Davis (Trades, Portfolio)'s Strategic Moves in Q1 2026
Warning! GuruFocus has detected 4 Warning Sign with AIG. Is COF fairly valued? Test your thesis with our free DCF calculator.
Chris Davis (Trades, Portfolio) recently submitted the 13F filing for the first quarter of 2026, providing insights into his investment moves during this period. Davis Advisors manages more than $60 billion across several different asset classes. Chris Davis (Trades, Portfolio) is the portfolio manager of Davis Financial Fund. Davis purchases durable, well-managed businesses that can be purchased at value prices and held for the long term (average holding period of a stock in the Davis New York Venture Fund is four to seven years). Davis focuses primarily on financial services companies. He looks to buy companies when they are out of favor.
Key Position Increases
Chris Davis (Trades, Portfolio) also increased stakes in a total of 64 stocks, among them:
The most notable increase was The Cigna Group (NYSE:CI), with an additional 1,481,077 shares, bringing the total to 2,233,929 shares. This adjustment represents a significant 196.73% increase in share count, a 1.82% impact on the current portfolio, with a total value of $595,905,880. The second largest increase was JBS NV (NYSE:JBS), with an additional 14,389,919 shares, bringing the total to 26,244,660. This adjustment represents a significant 121.39% increase in share count, with a total value of $471,354,100.
Summary of Sold Out
Chris Davis (Trades, Portfolio) completely exited 2 of the holdings in the first quarter of 2026, as detailed below:
UDR Inc (NYSE:UDR): Chris Davis (Trades, Portfolio) sold all 113,280 shares, resulting in a -0.02% impact on the portfolio. Netstreit Corp (NYSE:NTST): Chris Davis (Trades, Portfolio) liquidated all 189,600 shares, causing a -0.02% impact on the portfolio.
Key Position Reduces
Chris Davis (Trades, Portfolio) also reduced positions in 36 stocks. The most significant changes include:
Reduced Applied Materials Inc (NASDAQ:AMAT) by 3,004,196 shares, resulting in a -71.51% decrease in shares and a -3.47% impact on the portfolio. The stock traded at an average price of $336.38 during the quarter and has returned 27.72% over the past 3 months and 60.29% year-to-date. Reduced Darling Ingredients Inc (NYSE:DAR) by 2,654,401 shares, resulting in a -93.39% reduction in shares and a -0.43% impact on the portfolio. The stock traded at an average price of $49.25 during the quarter and has returned 29.00% over the past 3 months and 72.72% year-to-date.
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Portfolio Overview
At the first quarter of 2026, Chris Davis (Trades, Portfolio)'s portfolio included 112 stocks, with top holdings including 7.15% in Capital One Financial Corp (NYSE:COF), 5.99% in Coterra Energy Inc (NYSE:CTRA), 5.31% in U.S. Bancorp (NYSE:USB), 4.85% in Viatris Inc (NASDAQ:VTRS), and 4.52% in Meta Platforms Inc (NASDAQ:META).
The holdings are mainly concentrated in 10 of all the 11 industries: Financial Services, Healthcare, Communication Services, Consumer Cyclical, Energy, Technology, Consumer Defensive, Basic Materials, Industrials, and Real Estate.
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- Devon Energy Announces Capital Return Update
May 7, 2026
Devon Energy Corporation
HOUSTON, May 07, 2026 (GLOBE NEWSWIRE) -- Devon Energy Corporation (“Devon”) (NYSE: DVN) today announced a series of capital return actions following the successful completion of its previously announced all-stock merger with Coterra Energy Inc. (“Coterra”) earlier today. The 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.
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Investor Contacts Daniel Guffey, 281-589-4875 Chris Carr, 405-228-2496 Hannah Stuckey, 281-589-4983 Wade Browne, 405-228-7240 Media Contact Michelle Hindmarch, 405-552-7460 Stephen Flaherty, 281-589-4826
FORWARD-LOOKING STATEMENTS
This press release includes “forward-looking statements” within the meaning of the federal securities laws. Such statements include those concerning strategic plans, our expectations and objectives for future operations, as well as other future events or conditions, and are often identified by use of the words and phrases “expects,” “believes,” “will,” “would,” “could,” “continue,” “may,” “aims,” “likely to be,” “intends,” “forecasts,” “projections,” “estimates,” “plans,” “expectations,” “targets,” “opportunities,” “potential,” “anticipates,” “outlook” and other similar terminology. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Devon expects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control. Consequently, actual future results could differ materially and adversely from our expectations due to a number of factors, including, but not limited to: the volatility of oil, gas and NGL prices, including from changes in trade relations and policies, such as the imposition of new or increased tariffs or other trade protection measures by the U.S., China or other countries; uncertainties inherent in estimating oil, gas and NGL reserves; the extent to which we are successful in acquiring and discovering additional reserves; the uncertainties, costs and risks involved in our operations; risks related to our hedging activities; our limited control over third parties who operate some of our oil and gas properties and investments; midstream capacity constraints and potential interruptions in production, including from limits to the build out of midstream infrastructure; competition for assets, materials, people and capital, which can be exacerbated by supply chain disruptions, including as a result of tariffs or other changes in trade policy; regulatory restrictions, compliance costs and other risks relating to governmental regulation, including with respect to federal lands, environmental matters, water disposal and tax matters; climate change and risks related to regulatory, social and market efforts to address climate change; risks relating to our sustainability initiatives; claims, audits and other proceedings impacting our business, including with respect to historic and legacy operations; governmental interventions in energy markets; counterparty credit risks; risks relating to our indebtedness; cybersecurity risks; risks associated with artificial intelligence and other emerging technologies; the extent to which insurance covers any losses we may experience; risks related to shareholder activism; our ability to successfully complete mergers, acquisitions and divestitures; our ability to pay dividends and make share repurchases; the risk that we may not realize the anticipated benefits of the merger with Coterra or successfully integrate the two companies; and any of the other risks and uncertainties discussed in Devon’s 2025 Annual Report on Form 10-K (the “2025 Form 10-K”) or other filings with the SEC.
The forward-looking statements included in this press release speak only as of the date of this press release, represent management’s current reasonable expectations as of the date of this press release and are subject to the risks and uncertainties identified above as well as those described elsewhere in the 2025 Form 10-K and in other documents we file from time to time with the SEC. We cannot guarantee the accuracy of our forward-looking statements, and readers are urged to carefully review and consider the various disclosures made in the 2025 Form 10-K and in other documents we file from time to time with the SEC. All subsequent written and oral forward-looking statements attributable to Devon, or persons acting on its behalf, are expressly qualified in their entirety by the cautionary statements above. We do not undertake, and expressly disclaim, any duty to update or revise our forward-looking statements based on new information, future events or otherwise.
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- Devon Energy and Coterra Energy (CTRA) Win Shareholder Approval for Merger
May 7, 2026
Coterra Energy Inc. (NYSE:CTRA) is one of the
10 All-Time High But Still Undervalued Stocks to Invest In.
On May 4, 2026, Devon Energy (NYSE:DVN) and Coterra Energy Inc. (NYSE:CTRA) said shareholders approved all proposals needed to complete the previously announced all-stock merger between the companies. The transaction is expected to close on or around May 7. Under the agreement, each share of Coterra common stock will be converted into 0.70 shares of Devon common stock, with cash paid for fractional shares. Following the merger, Devon shareholders are expected to own about 54% of the combined company, while Coterra shareholders will own about 46% on a fully diluted basis.
Meanwhile, Scotiabank raised its price target on Coterra Energy Inc. (NYSE:CTRA) to $32 from $31 and maintained a Sector Perform rating as part of a broader update on energy names.Devon Energy and Coterra Energy (CTRA) Win Shareholder Approval for Merger
Pixabay/Public Domain
Coterra Energy Inc. (NYSE:CTRA) is an independent oil and gas producer focused on oil, natural gas, and natural gas liquids in the United States.
While we acknowledge the potential of CTRA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.
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- Here’s Why Aristotle Value Equity Strategy Sold Coterra Energy (CTRA) in Q1
May 7, 2026
Aristotle Capital Management, LLC, an investment management company, released its “Value Equity Fund” first-quarter 2026 investor letter. A copy of the letter can be downloaded here. During the first quarter, the U.S. equity market declined, with the S&P 500 Index falling by 4.33%. The fixed-income sector also saw a downturn; the Bloomberg U.S. Aggregate Bond Index fell by 0.05%. In terms of investment styles, the value outperformed growth. Macroeconomic conditions indicated a slowdown in growth while inflationary pressures persisted. Additionally, geopolitical events contributed to heightened volatility during this period. For the first quarter of 2026, the Aristotle Value Equity Fund (Class I-2) recorded a total return of -2.23%, underperforming the Russell 1000 Value Index’s return of 2.10% but outperforming the S&P 500 Index’s return of -4.33%. In this challenging environment, the firm remains focused on what it considers to be more assessable and sustainable: the long-term fundamentals of individual businesses. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Aristotle Value Equity Strategy highlighted stocks like Coterra Energy Inc. (NYSE:CTRA). Coterra Energy Inc. (NYSE:CTRA) is a leading independent oil and gas company that explores, develops, and produces oil, natural gas, and natural gas liquids. On May 6, 2026, Coterra Energy Inc. (NYSE:CTRA) closed at $32.56 per share. One-month return of Coterra Energy Inc. (NYSE:CTRA) was -2.75%, and its shares gained 40.83% over the past 52 weeks. Coterra Energy Inc. (NYSE:CTRA) has a market capitalization of $24.73 billion.
Aristotle Value Equity Strategy stated the following regarding Coterra Energy Inc. (NYSE:CTRA) in its Q1 2026 investor letter:
"During the quarter, we sold our position in Coterra Energy Inc. (NYSE:CTRA) and purchased Chevron, McCormick & Company and Motorola Solutions. These purchases were funded through the sale of Coterra Energy, trims to Parker Hannifin and Atmos Energy for risk management purposes, as well as proceeds from the prior quarter sale of Constellation Brands.
We first invested in Coterra Energy, the Houston-based oil and natural gas producer, in the third quarter of 2019, when the company was known as Cabot Oil & Gas. Following its merger with Cimarex Energy in 2021, the company was renamed Coterra Energy, creating a more diversified operator with assets spanning the Marcellus, Permian and Anadarko basins. During our holding period, the company demonstrated strong operational execution across this asset base, supported by its low-cost structure and flexible capital allocation approach. It also improved efficiency and expanded takeaway capacity to access premium gas markets, while its balanced exposure to oil and natural gas helped it navigate commodity cycles more effectively than many peers. As the company transitions to its next phase following the recently announced all-stock merger with Devon Energy, Coterra will become a larger, more Delaware Basin-focused U.S. shale producer. While we see potential for synergies, we believe these benefits will take time to materialize. We therefore exited the position and reallocated capital to Chevron while continuing to monitor the progress of the combined company as integration efforts unfold."
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Mizuho Lifts Coterra (CTRA) Target on Higher Oil Price Forecast
Coterra Energy Inc. (NYSE:CTRA) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 45 hedge fund portfolios held Coterra Energy Inc. (NYSE:CTRA) at the end of the fourth quarter, compared to 47 in the previous quarter. While we acknowledge the potential of Coterra Energy Inc. (NYSE:CTRA) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
In another article, we covered Coterra Energy Inc. (NYSE:CTRA) and shared the list of all-time high but still undervalued stocks to invest in. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
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- Devon Energy and Coterra Energy Complete Merger
May 7, 2026
Devon Energy Corporation
OKLAHOMA CITY and HOUSTON, May 07, 2026 (GLOBE NEWSWIRE) -- Devon Energy Corporation (“Devon”) (NYSE: DVN) and Coterra Energy Inc. (“Coterra”) (NYSE: CTRA) today announced the successful completion of their previously announced all-stock merger (the “Transaction”), creating a premier large-cap shale operator with a high-quality asset base anchored by a leading position in the economic core of the Delaware Basin. The Transaction was approved by stockholders of both companies at special meetings held on May 4, 2026. The combined company will operate under the name Devon Energy and will continue to trade on the New York Stock Exchange under the ticker symbol “DVN.” The combined company will be headquartered in Houston, while maintaining a significant presence in Oklahoma City.
“This transformative merger marks a defining moment for Devon Energy,” said Clay Gaspar, Devon’s President and Chief Executive Officer. “We have brought together two companies with proud histories and cultures of operational excellence to create a premier shale operator with the scale, inventory depth and financial strength to deliver differentiated returns for shareholders through any commodity cycle. With a leading Delaware Basin position and $1 billion in identified annual pre-tax synergies targeted by year-end 2027, Devon is exceptionally well-positioned to generate resilient free cash flow and return meaningful capital to shareholders for years to come.”
“I want to thank the employees of both companies for their extraordinary efforts to bring this combination to completion,” said Tom Jorden, Non-Executive Chairman of the Board. “Coterra’s world-class assets, technical capabilities and people now strengthen Devon in a way that creates a company greater than the sum of its parts. I am confident that the combined organization’s disciplined capital allocation, operational expertise and commitment to shareholder returns will drive enduring value creation.”
TRANSACTION DETAILS
In accordance with the Merger Agreement, each share of Coterra common stock has been converted into the right to receive 0.70 shares of Devon common stock, with cash paid in lieu of any fractional shares. Coterra common stock will no longer be listed for trading on the NYSE. Devon shareholders before the merger own approximately 54 percent of the combined company and former Coterra shareholders own approximately 46 percent on a fully diluted basis.
Additional information regarding the exchange of Coterra common stock for merger consideration was mailed to registered holders of Coterra common stock.
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SENIOR LEADERSHIP TEAM
As previously announced, the senior leadership team consists of:
Clay M. Gaspar, President and Chief Executive Officer Shannon E. Young III, Executive Vice President and Chief Financial Officer Michael D. Deshazer, Executive Vice President, Exploration & Production – Anadarko, Eagle Ford, Marcellus & Rockies Robert (Trey) F. Lowe III, Executive Vice President and Chief Technology Officer John D. Raines, Executive Vice President, Exploration & Production – Permian Jeffrey L. Ritenour, Executive Vice President and Chief Corporate Development Officer Blake A. Sirgo, Executive Vice President, Operations Andrea M. Alexander, Senior Vice President and Chief Administrative Officer Adam M. Vela, Senior Vice President and General Counsel
BOARD OF DIRECTORS
The combined company’s new Board of Directors consists of 11 members, six from Devon and five from Coterra, with a diverse mix of skills, perspectives, and experience. The members are:
Clay M. Gaspar, President and Chief Executive Officer Thomas E. Jorden, Non-Executive Chairman of the Board (former Coterra Board member) Amanda M. Brock (former Coterra Board member) Ann G. Fox Jacinto J. Hernandez (former Coterra Board member) Kelt Kindick Karl F. Kurz Jeffrey E. Shellebarger (former Coterra Board member) Brent Smolik Marcus A. Watts (former Coterra Board member) Valerie M. Williams
ABOUT DEVON ENERGY
Devon Energy is a leading oil and gas producer in the U.S. with a premier multi-basin portfolio touching the Anadarko Basin, Eagle Ford, Marcellus Shale, Powder River Basin, Williston Basin, and anchored by a world-class acreage 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.
Investor Contacts Daniel Guffey, 281-589-4875 Chris Carr, 405-228-2496 Hannah Stuckey, 281-589-4983 Wade Browne, 405-228-7240 Media Contact
Michelle Hindmarch, 405-552-7460
Stephen Flaherty, 281-589-4826
FORWARD LOOKING STATEMENTS
This press release includes “forward-looking statements” within the meaning of the federal securities laws. Such statements include those concerning strategic plans, our expectations and objectives for future operations, as well as other future events or conditions, and are often identified by use of the words and phrases “expects,” “believes,” “will,” “would,” “could,” “continue,” “may,” “aims,” “likely to be,” “intends,” “forecasts,” “projections,” “estimates,” “plans,” “expectations,” “targets,” “opportunities,” “potential,” “anticipates,” “outlook” and other similar terminology. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Devon expects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control. Consequently, actual future results could differ materially and adversely from our expectations due to a number of factors, including, but not limited to: the volatility of oil, gas and NGL prices, including from changes in trade relations and policies, such as the imposition of new or increased tariffs or other trade protection measures by the U.S., China or other countries; uncertainties inherent in estimating oil, gas and NGL reserves; the extent to which we are successful in acquiring and discovering additional reserves; the uncertainties, costs and risks involved in our operations; risks related to our hedging activities; our limited control over third parties who operate some of our oil and gas properties and investments; midstream capacity constraints and potential interruptions in production, including from limits to the build out of midstream infrastructure; competition for assets, materials, people and capital, which can be exacerbated by supply chain disruptions, including as a result of tariffs or other changes in trade policy; regulatory restrictions, compliance costs and other risks relating to governmental regulation, including with respect to federal lands, environmental matters, water disposal and tax matters; climate change and risks related to regulatory, social and market efforts to address climate change; risks relating to our sustainability initiatives; claims, audits and other proceedings impacting our business, including with respect to historic and legacy operations; governmental interventions in energy markets; counterparty credit risks; risks relating to our indebtedness; cybersecurity risks; risks associated with artificial intelligence and other emerging technologies; the extent to which insurance covers any losses we may experience; risks related to shareholder activism; our ability to successfully complete mergers, acquisitions and divestitures; our ability to pay dividends and make share repurchases; the risk that we may not realize the anticipated benefits of the Transaction or successfully integrate the two companies; and any of the other risks and uncertainties discussed in Devon’s 2025 Annual Report on Form 10-K (the “2025 Form 10-K”) or other filings with the SEC.
The forward-looking statements included in this press release speak only as of the date of this press release, represent management’s current reasonable expectations as of the date of this press release and are subject to the risks and uncertainties identified above as well as those described elsewhere in the 2025 Form 10-K and in other documents we file from time to time with the SEC. We cannot guarantee the accuracy of our forward-looking statements, and readers are urged to carefully review and consider the various disclosures made in the 2025 Form 10-K and in other documents we file from time to time with the SEC. All subsequent written and oral forward-looking statements attributable to Devon, or persons acting on its behalf, are expressly qualified in their entirety by the cautionary statements above. We do not undertake, and expressly disclaim, any duty to update or revise our forward-looking statements based on new information, future events or otherwise.
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