Devon Energy Provides Updated 2026 Outlook
Rhea-AI Summary
Devon Energy (NYSE: DVN) released its updated 2026 outlook for the combined company after merging with Coterra Energy.
Guidance includes average 2026 production of 1.380 million BOE/d (500,000 bbl/d oil), capital spending of about $4.9 billion with over 60% in the Permian, and activity of 31 rigs and 10 completion crews to bring 460–480 net wells online.
Devon targets returning up to 70% of free cash flow via a fixed quarterly dividend of $0.32 per share and an $8 billion share repurchase authorization, plans to retire $1.25 billion of debt in 2026, and expects $600 million in 2027 synergies and $1.0 billion in annual pretax synergy run-rate by year-end 2027.
AI-generated analysis. Not financial advice.
Positive
- 2026 production outlook of 1.380 million BOE per day, including 500,000 bbl/d oil
- 2026 capital program of about $4.9 billion with 60%+ allocated to Permian Basin
- Plan to bring 460–480 net wells online in 2026 using 31 rigs and 10 completion crews
- Targeted return of up to 70% of free cash flow to shareholders
- Quarterly fixed dividend set at $0.32 per share
- Existing $8 billion share repurchase authorization referenced in 2026 outlook
- Expectation to retire $1.25 billion of debt in 2026
- Projected $600 million synergies in 2027 and $1.0 billion annual pretax run-rate by year-end 2027
- Maintaining an investment-grade balance sheet with liquidity to fund the capital program
Negative
- None.
Key Figures
Market Reality Check
Peers on Argus
DVN fell 2.62% alongside declines in peers EXE (-1.61%), TPL (-3.25%), CTRA (-1.69%), EQT (-0.55%) and FANG (-1.15%), indicating a broader E&P/energy-led pullback rather than a DVN-specific reaction.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jun 08 | Exchange offer update | Neutral | +2.2% | Reported early participation results and extended exchange offer deadline. |
| May 28 | Lease sale results | Positive | +0.9% | Highlighted Devon as top bidder in record BLM lease sale. |
| May 22 | Exchange offers launch | Neutral | +0.2% | Launched private exchange offers and related consent solicitations post‑merger. |
| May 21 | Federal lease auction | Neutral | -2.8% | Detailed record-breaking BLM lease auction where Devon secured 24 parcels. |
| May 21 | Permian acreage deal | Positive | -2.8% | Announced $2.6B acquisition of 16,300 Delaware Basin acres and 400 locations. |
Recent DVN news — including merger-related actions and major lease wins — has generally seen modest positive or mixed price reactions, with no clear pattern of strong selling on strategic updates.
Over the last few weeks, Devon has focused on integrating its Coterra merger and expanding its Permian footprint. On May 21, it agreed to buy 16,300 net undeveloped Delaware Basin acres for about $2.6 billion, followed by record BLM lease sale disclosures the same day. Subsequent filings on May 22 detailed pro forma financials and exchange offers for Coterra notes. Early tender results on June 8 showed strong participation. Today’s 2026 outlook builds on this integration and capital allocation narrative.
Regulatory & Risk Context
Devon has an effective Form S-3ASR shelf dated April 10, 2026, covering a range of securities (common and preferred stock, depositary shares, warrants, debt, stock purchase contracts and units). The filing also contemplates the all‑stock Coterra merger and allows future capital raises under this framework. One related 424B3 takedown was filed on June 5, 2026.
Market Pulse Summary
This announcement sets out Devon’s first combined 2026 plan post‑Coterra, highlighting expected production of 1.380 million boe/d, capital spending of $4.9 billion and a goal to return up to 70% of free cash flow via a $0.32 dividend and an $8 billion buyback. The company also targets $1.0 billion in run‑rate synergies by year‑end 2027 and $1.25 billion of debt retirement. Investors may track execution on Permian-focused activity, merger integration and delivery of the synergy and return targets.
Key Terms
barrels of oil equivalent technical
AI-generated analysis. Not financial advice.
HOUSTON, June 09, 2026 (GLOBE NEWSWIRE) -- Devon Energy Corp. (NYSE: DVN) today provided an updated outlook for the combined company following the recent completion of its transformative merger with Coterra Energy. Supplemental guidance tables for the combined entity are included below and a presentation is available on the company’s website at www.devonenergy.com.
KEY HIGHLIGHTS
- Combined Production Outlook: Production is expected to average 1.380 million barrels of oil equivalent per day for 2026, including oil volumes of 500,000 barrels per day.
- Capital Investment Plan: Full year 2026 capital spending is expected to total approximately
$4.9 billion , with more than60% allocated to the Permian Basin. The plan reflects a disciplined activity level of 31 rigs and 10 completion crews, with 460 to 480 net wells expected online, optimized for free cash flow generation. - Enhanced Shareholder Returns: The company is targeting the return of up to
70% of free cash flow to shareholders, through a quarterly fixed dividend of$0.32 per share and the previously announced$8 billion share repurchase authorization. - Balance Sheet Strength: Maintaining an investment grade balance sheet with ample liquidity to fund the capital program through commodity cycles. We expect to retire
$1.25 billion of debt in 2026. - Portfolio Review Underway: We will provide timely updates as we move expeditiously to concentrate the portfolio around our premier Permian position, enabling improved shareholder returns.
- Synergy Capture: The company is accelerating synergy capture and expects to capture
$600 million in 2027 and is on track to deliver$1.0 billion of annual pretax synergies on a run-rate basis by year-end 2027. Shared best practices and technology are driving material progress on capital optimization, operating margin improvements, and corporate cost structure.
CEO COMMENTARY
"We are excited to share our initial outlook for the combined company," said Clay Gaspar, president and CEO. "We are carrying a sense of urgency into all aspects of our business, including integration, execution, and our portfolio review. Today’s guidance underscores the strength of our newly combined platform as one of the largest and most efficient E&P companies. Optimizing our portfolio remains a top priority, and a complete review of our strategic and financial criteria is well underway. We are confident in our ability to translate the power of this combination into durable free cash flow growth and improved shareholder returns."
ABOUT DEVON ENERGY
Devon Energy is a leading oil and gas producer in the U.S. with a diversified multi-basin portfolio headlined by a world-class acreage position in the Delaware Basin. Devon’s disciplined cash-return business model is designed to achieve strong returns, generate free cash flow and return capital to shareholders, while focusing on safe and sustainable operations. For more information, please visit www.devonenergy.com.
| Investor Contact | Media Contact |
| investor.relations@dvn.com | Michelle Hindmarch |
| 405-228-4450 | 405-552-7460 |
NON-GAAP DISCLOSURES
This press release includes non-GAAP (generally accepted accounting principles) financial measures. Such non-GAAP measures are not alternatives to GAAP measures, and you should not consider these non-GAAP measures in isolation or as a substitute for analysis of results as reported under GAAP. Reconciliations of these non-GAAP measures and other disclosures are provided within the supplemental financial tables that are available on the company’s website and in the related Form 10-Q filed with the Securities and Exchange Commission (the “SEC”).
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; 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.
SECOND-QUARTER AND FULL-YEAR 2026 GUIDANCE
Note: Devon’s Q2 and full-year 2026 guidance reflects standalone Devon operations plus Coterra beginning on May 7, 2026.
| PRODUCTION GUIDANCE | ||||||||||||||||
| Quarter 2 | Full Year | |||||||||||||||
| Low | High | Low | High | |||||||||||||
| Oil (MBbls/d) | 485 | 505 | 490 | 510 | ||||||||||||
| Natural gas liquids (MBbls/d) | 305 | 315 | 315 | 330 | ||||||||||||
| Gas (MMcf/d) | 3,150 | 3,250 | 3,300 | 3,400 | ||||||||||||
| Total oil equivalent (MBoe/d) | 1,315 | 1,360 | 1,355 | 1,405 | ||||||||||||
| CAPITAL EXPENDITURES GUIDANCE | |||||||||||||||||||||||||||||||
| Quarter 2 | Full Year | ||||||||||||||||||||||||||||||
| (in millions) | Low | High | Low | High | |||||||||||||||||||||||||||
| Permian | |||||||||||||||||||||||||||||||
| Rockies | |||||||||||||||||||||||||||||||
| Eagle Ford | |||||||||||||||||||||||||||||||
| Anadarko | |||||||||||||||||||||||||||||||
| Marcellus | |||||||||||||||||||||||||||||||
| Upstream capital | $ | 1,225 | $ | 1,275 | $ | 4,675 | $ | 4,825 | |||||||||||||||||||||||
| Midstream and other capital | 25 | 75 | 125 | 175 | |||||||||||||||||||||||||||
| Total capital | $ | 1,250 | $ | 1,350 | $ | 4,800 | $ | 5,000 | |||||||||||||||||||||||
| PRICE REALIZATIONS GUIDANCE | ||||||||||||||||
| Quarter 2 | Full Year | |||||||||||||||
| Low | High | Low | High | |||||||||||||
| Oil - % of WTI | 98 | % | 102 | % | 98 | % | 100 | % | ||||||||
| NGL - % of WTI | 21 | % | 25 | % | 24 | % | 26 | % | ||||||||
| Natural gas - % of Henry Hub | 10 | % | 20 | % | 40 | % | 50 | % | ||||||||
OTHER GUIDANCE ITEMS | ||||||||||||||||||||
| Quarter 2 | Full Year | |||||||||||||||||||
| ($ millions, except Boe and %) | Low | High | Low | High | ||||||||||||||||
| LOE per BOE | $ | 5.00 | $ | 5.20 | $ | 5.00 | $ | 5.20 | ||||||||||||
| GP&T per BOE | $ | 3.20 | $ | 3.40 | $ | 3.00 | $ | 3.20 | ||||||||||||
| Production and property taxes as % of upstream sales | 6.5 | % | 7.5 | % | 6.5 | % | 7.5 | % | ||||||||||||
| Exploration expenses | $ | 10 | $ | 20 | $ | 70 | $ | 90 | ||||||||||||
| Depreciation, depletion and amortization per BOE | $ | 11.50 | $ | 12.00 | $ | 11.00 | $ | 11.50 | ||||||||||||
| General and administrative expenses per BOE | $ | 1.30 | $ | 1.40 | $ | 1.35 | $ | 1.45 | ||||||||||||
| Financing costs, net | $ | 125 | $ | 135 | $ | 495 | $ | 515 | ||||||||||||
| INCOME TAX GUIDANCE | ||||||||||||||||||||
| Quarter 2 | Full Year | |||||||||||||||||||
| (% of pre-tax earnings) | Low | High | Low | High | ||||||||||||||||
| Current income tax rate | 19 | % | 21 | % | 13 | % | 15 | % | ||||||||||||
| Effective income tax rate | 23 | % | 25 | % | 22 | % | 24 | % | ||||||||||||
2026 & 2027 HEDGING POSITIONS
| Oil Commodity Hedges | ||||||||||||||||||||
| Price Swaps | Price Collars | |||||||||||||||||||
| Period | Volume (Bbls/d) | Weighted Average Price ($/Bbl) | Volume (Bbls/d) | Weighted Average Floor Price ($/Bbl) | Weighted Average Ceiling Price ($/Bbl) | |||||||||||||||
| Q2-Q4 2026 | 9,127 | $ | 66.14 | 75,382 | $ | 56.30 | $ | 72.98 | ||||||||||||
| Q1-Q4 2027 | — | $ | — | 32,466 | $ | 58.86 | $ | 83.19 | ||||||||||||
| Three Way Collars | |||||||||||||||||||||||
| Period | Volume (Bbls/d) | Weighted Average Floor Sold Price ($/Bbl) | Weighted Average Floor Purchased Price ($/Bbl) | Weighted Average Ceiling Price ($/Bbl) | |||||||||||||||||||
| Q2-Q4 2026 | 108,698 | $ | 49.51 | $ | 59.59 | $ | 72.62 | ||||||||||||||||
| Q1-Q4 2027 | 57,397 | $ | 47.25 | $ | 57.25 | $ | 73.14 | ||||||||||||||||
| Oil Basis Swaps | |||||||||||
| Period | Index | Volume (Bbls/d) | Weighted Average Differential to WTI ($/Bbl) | ||||||||
| Q2-Q4 2026 | WTI/NYMEX | 73,615 | $ | 0.95 | |||||||
| Q2-Q4 2026 | Midland Sweet | 46,000 | $ | 1.10 | |||||||
| Q2-Q4 2026 | WTI/Brent | 8,625 | $ | (5.61 | ) | ||||||
| Q2-Q4 2026 | NYMEX Roll | 88,727 | $ | 1.31 | |||||||
| Q1-Q4 2027 | WTI/NYMEX | 32,466 | $ | 1.04 | |||||||
| Q1-Q4 2027 | Magellan East Houston | 27,000 | $ | 1.85 | |||||||
| Q1-Q4 2027 | Midland Sweet | 48,000 | $ | 1.02 | |||||||
| Natural Gas Commodity Hedges - Henry Hub | ||||||||||||||||||||
| Price Swaps | Price Collars | |||||||||||||||||||
| Period | Volume (MMBtu/d) | Weighted Average Price ($/MMBtu) | Volume (MMBtu/d) | Weighted Average Floor Price ($/MMBtu) | Weighted Average Ceiling Price ($/MMBtu) | |||||||||||||||
| Q2-Q4 2026 | 247,500 | $ | 3.80 | 930,000 | $ | 3.36 | $ | 5.44 | ||||||||||||
| Q1-Q4 2027 | — | $ | — | 490,000 | $ | 3.17 | $ | 5.33 | ||||||||||||
Natural Gas Basis Swaps | |||||||||||
| Period | Index | Volume (MMBtu/d) | Weighted Average Differential to Henry Hub ($/MMBtu) | ||||||||
| Q2–Q4 2026 | Houston Ship Channel | 50,000 | $ | (0.29 | ) | ||||||
| Q2–Q4 2026 | Transco Leidy | 194,545 | $ | (0.78 | ) | ||||||
| Q2–Q4 2026 | Transco Zone 6 Non-NY | 194,545 | $ | (0.16 | ) | ||||||
| Q2–Q4 2026 | WAHA | 305,636 | $ | (1.85 | ) | ||||||
| Q1–Q4 2027 | Transco Leidy | 47,500 | $ | (0.65 | ) | ||||||
| Q1–Q4 2027 | Transco Zone 6 Non-NY | 150,000 | $ | 0.35 | |||||||
| Q1–Q4 2027 | WAHA | 135,041 | $ | (1.30 | ) | ||||||
Devon’s oil derivatives settle against the average of the prompt month NYMEX West Texas Intermediate futures price. Devon’s natural gas derivatives settle against the Inside FERC first of the month Henry Hub index. Devon’s NGL derivatives settle against the average of the prompt month OPIS Mont Belvieu, Texas index. Commodity hedge positions are shown as of May 31, 2026.
