Devon Energy Declares $0.24 Quarterly Dividend, Plans 31% Hike Post-Merger
Devon Energy set a $0.24 per share dividend for the first quarter, payable March 31. The company plans to raise its quarterly payout 31% to $0.315 per share after closing its merger with Coterra Energy.
Devon Energy Corp. declared a quarterly dividend of $0.24 per share for the first quarter of 2026, payable March 31 to shareholders of record as of March 13. The dividend represents a 33% increase from the company's previous quarterly rate of $0.18 per share. Read more dividend announcements.
The Oklahoma City-based oil and gas producer said it plans to further increase its quarterly dividend rate by 31% to $0.315 per share following the close of its merger with Coterra Energy, subject to board approval. That transaction is expected to close in the second quarter of 2026.
| Dividend Details | Information |
|---|---|
| Amount | $0.24 per share |
| Record Date | March 13, 2026 |
| Payment Date | March 31, 2026 |
| Frequency | Quarterly |
| Previous Amount | $0.18 per share |
Devon reported fourth-quarter net earnings of $562 million, or $0.90 per diluted share. Core earnings, adjusted for items analysts typically exclude, totaled $510 million, or $0.82 per diluted share.
Operating cash flow reached $1.5 billion in the quarter. After funding capital requirements, Devon generated $702 million in free cash flow.
Balance Sheet and Capital Returns
The company ended the fourth quarter with $1.4 billion in cash and a fully undrawn $3 billion credit facility. Outstanding debt stood at $8.4 billion, producing a net debt-to-EBITDAX ratio of 0.9 times.
Devon repurchased 7.1 million shares for $250 million during the fourth quarter as part of its $5 billion share repurchase program. Since the program's inception, the company has returned $4.4 billion to shareholders and retired approximately 14% of outstanding shares.
The company suspended share repurchases in connection with the Coterra merger announcement and expects the suspension to continue through closing. Devon said it plans to establish a new share repurchase authorization exceeding $5 billion after the merger closes, subject to board approval.
Operations
Devon operated 19 drilling rigs and 4 completion crews during the fourth quarter, bringing 95 gross operated wells online with an average lateral length of 10,200 feet. Capital investment, excluding acquisitions, totaled $883 million, running 4% below guidance due to effective cost management and timing of facility spending.
The company completed $141 million in leasehold acquisitions across multiple assets, primarily in the Delaware Basin. Production averaged 8 million barrels of oil equivalent per day during the quarter.
The merger with Coterra Energy is expected to create one of the largest shale operators globally with a premier position in the Delaware Basin. Devon expects the combined company to capture $1 billion in sustainable annual pre-tax synergies. Upon closing, Devon shareholders will own approximately 54% of the combined company and Coterra shareholders will own about 46% on a fully diluted basis.