Devon Energy announced that it will merge with Houston-based Coterra Energy in a multi-billion-dollar, all-stock transaction that shifts the combined company’s headquarters to Texas while maintaining what executives describe as a “significant presence” in Oklahoma City, according to company statements and local reporting.
The deal, valued at roughly $58 billion, would create one of the nation’s largest independent shale producers, with Devon shareholders owning about 54% of the combined company and Coterra shareholders holding about 46% on a fully diluted basis, according to details reported by local outlet KOCO-TV.
The merged company will reportedly retain the Devon Energy name and is expected to close in mid-2026, pending regulatory approval and shareholder votes.
Devon President and CEO Clay Gaspar said in a news release that the merger would generate about $1 billion in annual “pre-tax synergies” through operational efficiencies.
“This transformative merger combines two companies with proud histories and cultures of operational excellence,” Gaspar said, according to KOCO-TV.
Gaspar and other top executives are expected to relocate to Houston, while the company has not specified how many of its Oklahoma City employees could be affected, according to reporting by The Oklahoman.
During an investor call, company representatives reportedly said the headquarters move was required as part of the merger and cited Houston’s access to industry peers and commercial partners.
State and local leaders said they are watching closely but urged caution against alarm.
Oklahoma Gov. Kevin Stitt told News 9 that Gaspar assured him a majority of employees would remain in Oklahoma City. Local economist Steve Agee said the oil and gas sector now accounts for a far smaller share of the state’s economy than in previous decades, according to News 9.
“It will be interesting to see what happens,” Agee said. “We don’t know how many people will move or even need that size of a facility anymore.”
The relocation marks the latest in a series of Oklahoma-based energy companies that have moved headquarters to Houston over the past several decades, a trend documented by The Oklahoman. City leaders and nonprofit organizations emphasized Devon’s longstanding philanthropic footprint, while acknowledging uncertainty about the long-term impact on downtown and the local workforce.
Mayor David Holt called Devon’s influence on Oklahoma City “immeasurable,” but said the city’s economic challenge remains diversification, according to The Oklahoman.
