Devon Energy Reveals 2026 Production Outlook and Capital Plan Post-Coterra Merger

Devon Energy issued its first integrated outlook following the close of its merger with Coterra Energy, guiding to 2026 production of about 1.380 million barrels of oil equivalent per day, including roughly 500,000 barrels per day of oil. The company set full-year capital spending near $4.9 billion, with more than 60% directed to the Permian Basin and a disciplined program of 31 rigs and 10 completion crews bringing 460 to 480 net wells online.

On the merger, Devon said it is accelerating integration and now expects to capture about $600 million of synergies in 2027, on track for a $1.0 billion annual pretax run-rate by the end of 2027 through capital optimization, operating-margin gains and lower corporate costs. Management framed the combined portfolio as built for free-cash-flow durability rather than volume growth, a stance that resonates with energy investors who have rewarded capital discipline over expansion.

On capital returns, Devon plans to direct up to 70% of free cash flow to shareholders via dividends and buybacks while retiring roughly $1.25 billion of debt in 2026 to strengthen the balance sheet. The plan positions DVN for resilient shareholder returns across commodity cycles, though realized cash flow and the pace of synergy capture will hinge on oil prices and integration execution.