Devon Energy announced a new capital return strategy that includes an $8 billion share buyback and an increase in its quarterly dividend, measures that come after completing its stock-for-stock merger with Coterra Energy.
The company explained that these decisions reflect the Board of Directors’ confidence in the combined company’s ability to generate free cash flow and in the financial strength of the new energy group.
Devon bets on share buybacks and higher dividends
The Board of Directors approved a fixed quarterly dividend of $0.320 per share, above internal projections of $0.315 and 33% higher than the previous quarter.
The payment will be distributed on June 30, 2026, to shareholders of record as of the close of business on June 15.
Devon also indicated that it will evaluate potential annual increases to its dividend policy as the integrated company’s financial performance evolves.
$8 billion share buyback program
One of the most significant announcements was the approval of a share repurchase authorization of up to $8 billion. According to the company, this amount represents about 15% of its current market capitalization.
The U.S. oil company noted that buybacks may be executed through open-market transactions or private agreements, depending on variables such as commodity prices, available cash flow, and debt-reduction targets.
The program will remain in effect until June 30, 2029.
Devon seeks to consolidate a resilient financial strategy
Clay Gaspar, President and Chief Executive Officer of Devon Energy, stated that the company is in a favorable position to sustain competitive returns for shareholders across different energy market cycles.
The executive highlighted that the integration with Coterra strengthens Devon’s operating scale and expands the depth of its inventory of strategic assets in the United States.
Today’s actions demonstrate our firm commitment to return significant capital to shareholders and maintain a disciplined, investment-grade balance sheet.
Gaspar stated.
The combined company strengthens its presence in U.S. shale
Devon Energy maintains a multi-basin portfolio focused on some of the most productive U.S. oil and gas regions, including Anadarko, Eagle Ford, Marcellus Shale, Powder River, Williston, and the Delaware Basin.
The company has consolidated its operating model around cash generation and free cash flow with the aim of sustaining efficient operations and consistent returns for investors.
In addition, Devon indicated that it will present updated financial and operational guidance for the combined company in mid-June 2026.
Source: Devon Energy
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