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Get filing alertsDevon Energy reports Q2 results post-Coterra merger, generates $1.7B free cash flow
Filed August 4, 2026 · Period ending August 4, 2026 · ~1 min read
Key Changes
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Completed Coterra Energy merger on May 7, 2026, 94 days after announcement, targeting $1.0B annual pre-tax synergies by year-end 2027 with ~$600M expected in 2027.
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Q2 net earnings of $1.9B ($2.03/share), core earnings $1.5B ($1.57/share); operating cash flow $3.7B with $1.7B adjusted free cash flow after $174M restructuring costs.
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Production jumped to 1,359 MBoe/d (503 Mbbl/d oil) from 833 MBoe/d prior quarter, reflecting Coterra assets; total debt rose to $11.4B from $8.4B, net debt-to-EBITDAX 1.2x.
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Returned $1.1B to shareholders via 33% dividend increase to $0.32/share ($366M paid), $197M share repurchases (4.3M shares), and $500M debt retirement.
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Acquired 16,300 net acres in Delaware Basin at New Mexico federal lease sale for $2.6B cash, adding ~400 top-tier 87.5% NRI locations; development planned for 2027.
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Summary
Devon Energy reported second quarter 2026 results reflecting its first full period following the May 7 close of the Coterra Energy merger. The combination drove production to 1,359 MBoe/d from 833 MBoe/d in the prior quarter, adding Coterra's Marcellus gas assets (210 MBoe/d) and expanding Permian and Anadarko positions.
Net earnings reached $1.9 billion on $3.7 billion operating cash flow, generating $1.7 billion in adjusted free cash flow after $174 million of merger-related restructuring costs. Total debt increased to $11.4 billion from $8.4 billion as Devon assumed Coterra's obligations, though net leverage of 1.2x remains conservative for the sector.
The company accelerated shareholder returns with a 33% dividend increase to $0.32 per share, $197 million in share repurchases over seven weeks, and $500 million in debt retirement. Devon also deployed $2.6 billion in cash to acquire 16,300 net acres at the New Mexico federal lease sale, adding approximately 400 high-quality Delaware Basin locations with favorable 87.5% net revenue interest terms for 2027 development. Management targets at least $1.0 billion in annual pre-tax synergies from the Coterra merger by year-end 2027, with roughly $600 million expected during 2027. Full-year 2026 production guidance of 1,364–1,398 MBoe/d reflects the combined entity from May 7 forward.
Section-by-Section Diff
Event · Item 2.02 — Results of Operations and Financial Condition
Devon Energy announced Q2 2026 financial and operational results with earnings release and supplemental materials furnished.
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On August 4, 2026, Devon Energy Corporation (the “Company”) announced its financial and operational results for the quarterly period ended June 30, 2026. In connection with this announcement, the Company provided an earnings release and certain supplemental financial information (including guidance and hedging information).
Devon Energy disclosed its second quarter 2026 financial and operational results. The company furnished an earnings release and supplemental materials including guidance and hedging information. The specific financial metrics are contained in the attached exhibits rather than in the 8-K body itself.
Event · Exhibit 99.1
Devon Energy reports Q2 2026 results following Coterra merger close, generating $1.7B adjusted free cash flow and returning $1.1B to shareholders.
Added in current filing · view on EDGAR →
Production Outperformance: Averaged 503,000 barrels of oil production per day in the second quarter, reaching the top-end of guidance ... Disciplined Capital Management: Invested $1,269 million of capital in the second quarter, 2 percent below midpoint guidance ... Production averaged 1,359,000 Boe per day in the second quarter, reaching the top-end of guidance.
Devon averaged 503,000 barrels of oil per day in Q2 2026, at the top end of guidance, with total production of 1,359,000 Boe per day. Capital expenditures totaled $1,269 million, 2 percent below the guidance midpoint. The company placed 120 net operated wells online during the quarter with an average lateral length of 10,800 feet.
Added in current filing · view on EDGAR → · paraphrased
Accelerated Shareholder Returns: Returned $1,063 million during the quarter through a combination of an increased quarterly dividend of $0.32 per share, renewed share repurchases and retirement of maturing debt ... Following the close of the merger with Coterra Energy, Devon's board of directors approved a 33 percent increase to the quarterly fixed dividend rate to $0.32 per share ... The second-quarter dividend totaled $366 million and was paid on Jun. 30, 2026. ... During the last seven weeks of the second quarter, the company repurchased 4.3 million shares for $197 million, leaving $7.8 billion of remaining capacity on the authorization, which extends through mid-2029. ... During the quarter, Devon retired $250 million of senior notes, retired $250 million of its term loan, and funded its $2.6 billion New Mexico federal lease acquisition with cash on hand, in addition to funding its dividend and seven weeks of its base share repurchase program.
Devon returned $1,063 million to shareholders in Q2 2026 through a combination of an increased quarterly dividend of $0.32 per share (a 33 percent increase), share repurchases of $197 million (4.3 million shares over seven weeks), and debt retirement. The company retired $250 million of senior notes and $250 million of its term loan during the quarter. The board approved an $8.0 billion share repurchase program with $7.8 billion remaining capacity through mid-2029.
Event · Exhibit 99.2
Devon Energy reports Q2 2026 results with net earnings of $1.9B, reflecting a major merger closing and strong oil pricing.
Added in current filing · view on EDGAR →
Net earnings attributable to Devon | $ 1,911 | $ 120 | $ 562 | $ 687 | $ 899
Devon reported net earnings of $1,911 million for Q2 2026, up sharply from $120 million in Q1 2026. The increase reflects the Coterra merger closing on May 7, 2026, which added significant production and assets, plus higher oil prices (WTI averaged $92.47/Bbl in Q2 vs. $72.10/Bbl in Q1). The filing notes full-year 2026 guidance reflects standalone Devon plus Coterra beginning May 7.
Added in current filing · view on EDGAR →
Total oil equivalent (MBoe/d) | Permian | 748 | 501 | 521 | 496 | 498 | Rockies | 192 | 187 | 192 | 205 | 189 | Eagle Ford | 77 | 66 | 57 | 63 | 60 | Anadarko | 128 | 75 | 77 | 85 | 90 | Marcellus | 210 | — | — | — | — | Other | 4 | 4 | 4 | 4 | 4 | Total | 1,359 | 833 | 851 | 853 | 841
Total production jumped to 1,359 MBoe/d in Q2 2026 from 833 MBoe/d in Q1 2026, driven by the Coterra acquisition. The Marcellus basin (210 MBoe/d) appears for the first time, representing Coterra's gas-weighted Appalachian assets. Permian production rose to 748 MBoe/d from 501 MBoe/d, and Anadarko increased to 128 MBoe/d from 75 MBoe/d, both reflecting Coterra's positions in those basins.
Added in current filing · view on EDGAR →
Restructuring and transaction costs | 246 | 19 | — | 9 | 9
Devon incurred $246 million in restructuring and transaction costs in Q2 2026, up from $19 million in Q1 2026. These costs relate to the Coterra merger and are excluded from the company's core earnings measure. The filing shows core earnings of $1,479 million for Q2 2026 after adjusting for these and other non-recurring items.
Added in current filing · view on EDGAR →
Total debt (GAAP) | $ 11,388 | $ 8,386 | $ 8,389 | $ 8,391
Total debt increased to $11,388 million at Q2 2026 from $8,386 million at Q1 2026, reflecting debt assumed in the Coterra merger. Net debt rose to $10,379 million from $0.0M. The net debt-to-EBITDAX ratio increased to 1.2x from 0.9x, though this remains within a conservative range for the sector.
Added in current filing · view on EDGAR →
PRODUCTION GUIDANCE | Quarter 3 | Full Year | Low | High | Low | High | Oil (MBbls/d) | 550 | 560 | 495 | 505 | Natural gas liquids (MBbls/d) | 375 | 385 | 319 | 326 | Gas (MMcf/d) | 4,450 | 4,500 | 3,300 | 3,400 | Total oil equivalent (MBoe/d) | 1,660 | 1,690 | 1,364 | 1,398
Devon guides full-year 2026 production to 1,364–1,398 MBoe/d (reflecting standalone Devon plus Coterra from May 7 onward) and Q3 2026 production to 1,660–1,690 MBoe/d. Full-year capital expenditures are guided to $4.8–$5.0 billion. The guidance reflects the combined entity's scale and the integration of Coterra's assets across multiple basins.
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Figures/quotes linked to EDGAR · Narrative written by AI · Aug 5, 2026 · How we verify