Devon Energy and Coterra Energy Shareholders Greenlight Merger

During the special meetings held on the same day, Devon reported that over 76% of its common stock was represented, with a remarkable 98% of votes cast supporting the merger. Similarly, Coterra demonstrated robust shareholder enthusiasm, with more than 82% of its shares represented and a staggering 99% of votes in favor.

Clay Gaspar, Devon’s President and CEO, expressed gratitude for the backing from shareholders, stating, “We are pleased with the strong support we received from shareholders of both companies.” He emphasized the merger as a milestone that would allow the combined entity to leverage its world-class asset bases, enhance margins, and accelerate free cash flow growth and shareholder returns.

Tom Jorden, Coterra’s Chairman, CEO, and President, echoed Gaspar’s sentiments, highlighting the strategic rationale behind the merger. He remarked, “Today’s overwhelming support from both Devon and Coterra shareholders affirms the compelling strategic rationale of this combination.” The merger is expected to create a premier large-cap shale operator capable of capturing significant capital and operational synergies, ultimately delivering sustainable long-term value for all shareholders.

As stipulated in the merger agreement, each share of Coterra common stock will be converted into the right to receive 0.70 shares of Devon common stock. Cash will be provided for any fractional shares. Upon completion, Devon shareholders will hold approximately 54% of the combined company, while Coterra shareholders will own about 46% on a fully diluted basis.

Both companies plan to file the final vote results for their respective special meetings with the U.S. Securities and Exchange Commission (SEC) via Form 8-K, ensuring transparency and compliance with regulatory standards.

Devon Energy is recognized as a leading oil and gas producer in the U.S., boasting a diversified multi-basin portfolio anchored by a prominent acreage position in the Delaware Basin. As a member of the S&P 500, Devon is headquartered in Oklahoma City and continues to focus on efficient and responsible energy production.

Coterra Energy operates as a premier exploration and production company based in Houston, Texas. Its operations are concentrated in the Permian Basin, Marcellus Shale, and Anadarko Basin. Coterra is dedicated to delivering sustainable returns through the efficient development of its diversified asset base.

The successful approval of the merger between Devon Energy and Coterra Energy marks a significant consolidation in the energy sector, promising enhanced operational efficiency and increased shareholder value. As both companies prepare for the official merger closing date, industry analysts and investors alike will be keenly observing the impacts of this strategic alliance on the market dynamics and competitive landscape within the energy sector.