This $58 Billion Merger Is Creating the Most Unstoppable Oil and Gas Stock in America

2026-03-20 05:50:00 ET

Devon Energy (NYSE: DVN) has surged 26% year-to-date and 37% over the past year, and the all-stock merger with Coterra Energy (NYSE: CTRA) announced February 2, 2026, is not slowing that momentum; it is accelerating it.

Since the merger announcement, Devon shares have risen 15% and Coterra shares 16%. That is the market pricing in a deal it believes in. The structure is straightforward: Devon shareholders retain approximately 54% of the combined entity, Coterra shareholders get 46%, and the combined company immediately becomes the premier independent shale operator in America with a dominant position in the Delaware Basin.

Devon's Q4 2025 results gave investors a clean foundation to build on. The company produced 390,000 barrels of oil per day, exceeding the top end of its own guidance, while capital spending of $883 million came in 4% below midpoint guidance. Free cash flow hit $702 million for the quarter, up 12.86% year-over-year. Mizuho reaffirmed its Outperform rating following the print. Devon CEO Clay Gaspar called it plainly: "This advantaged platform will deliver higher free cash flow and enhanced shareholder returns, well beyond what either company could achieve on its own."

Continue reading