DEAL ALERT (DEVON+COTERRA)

Energy Advisors is issuing a continuing research series as events unfold regarding Coterra and Devon.

Our latest is: Devon's Bigger, So Are Its Options (June 11, 2026). This is our 4th Report in the continuing series. All 4 reports are available for download to the right plus curated public documents from Devon and Kimmeridge.

On February 2, 2026 Coterra and Devon announced an at-market Merger of Equals that values Coterra at $25.3B (incl. $3.8B of net debt). This is the largest deal since Diamondback acquired Endeavor for $26.0B in Feb. 2024.

Devon maintains control including majority of 11 member Board. Devon's Clay Gaspar is CEO. Merger closed on May 7.

Check out the reports to the right.

Alert #4 --Devon's Bigger, So Are Its Options. Devon is now officially concentrating to the Delaware and is moving quickly to determine future of the rest of the portfolio. Spending >90% of CAPEX towards oil & 61% to Delaware. The rest of the portfolio? Marcellus, most strategic asset under review, has an $8B unsolicited offer (Stone Ridge). Devon now ranks #1 in SCOOP/STACK and is likely capturing synergies in the short term. The Bakken is helping the oil focus and gets 18% of the budget. The Eagle Ford is smallest asset and while positioned in strong area may be a sale candidate to hungry buyers in the area.

Alert #3 -- What does 1+1 equal? Coterra & Devon Risky Arithmetic?. New Devon created with $58B value. Devon gets Board control and naming rights. We look at factors regarding the question: What does 1+1 equal to? New Devon producing 1.6 MMboepd: Delaware Basin (53%), Marcellus (20%), Rockies (13%), Anadarko (11%), Eagle Ford (3%).

Alert #2 -- The Debate Continues: Kimmeridge Taps Sheffield. Provides insights to the impact of Kimmeridge's plans to nominate Scott Sheffield to Coterra chairman along with 4 others to the board.

Alert #1 -- The Debate Begins: Smascho v. Pure-Play. Analyzes Coterra's portfolio and the impact of a potential merger with Devon Energy.

Here's a timeline:

1. June 9, 2026: June update from Devon. Clear message to concentrate portfolio to Delaware. Other regions under review.
2. May 29, 2026: Reports of an unsolicited $8B Marcellus bid by Stone Ridge (aggressive ABS buyer).
3. May 20, 2026: Devon goes strong at NMX BLM federal land auction. Spends $2.6B for 400 net locs (normalized to 2-mile lats). $6.5MM per location. Sets record with $357,129 per acre bid for a 640 acre section ($229MM).
4. May 7, 2026: Merger closed.
5. April 28, 2026: Kimmeridge urges quick action on non-core sales.
6. February 2, 2026: Kimmeridge says it is supportive of a merger that can meaningfully unlock value and continues to believe asset rationalization will be required to focus on Delaware. Awaiting Coterra's slate of director nominees.
7. February 2, 2026: Coterra and Devon merge in at-market Merger of Equals. 0.70 Devon share for each Coterra. Devon controls Board. CTRA's Tom Jorden Chairman, DVN's Clay Gaspar CEO. HQ: Houston w/OK City maintaining presence.
8. January 2026: On January 22, Kimmeridge announced its intent to nominate Scott Sheffield and 4 others to Coterra's board. Coterra is expected to hold its board vote on or around April 30, 2025.
9. January 2026: On January 15, rumors surfaced that Coterra and Devon were in early stage of a potential mega-merger, though Coterra maintains it is keeping options open.
10. November 2025: After its "Coterra Letter", filings reveal that Kimmeridge had also acquired a 0.9% stake in Devon.
11. November 2025: Coterra's CEO Tom Jorden defended its balanced asset base and disciplined strategy maintaing it allows it to maintain shareholder returns through commodity-price cycles and allows for cross-basin technical learning.
12. November 2025: Kimmeridge issues a public Letter to Coterra to "Restore Governance and Unlock Value" - calls for decisive action to address failures of governance and lack of focus - suggests value created by a pure-play Delaware focus and sale of low-decline Marcellus and Anadarko assets.
13. January 2025: Coterra closes Franklin and Avant.
14. November 2024: Coterra buys 65,000 Boepd and ~50,000 net acres in New Mexico Delaware Basin for $3.9 billion in cash and stock via acquisition of Franklin Mountain Energy and Avant Natural Resources.
15. October 2023: Merger closes on October 11, 2023. Companies rebrand as Coterra (NYSE: CTRA). Stock at $28.25.
16. May 2021: Cabot Oil & Gas acquires Cimarex via all-stock merger of equals creating a 3-basin company with Marcellus, Delaware Basin and Anadarko

Quick Quotes:

--------Delaware. "After closing the merger, Devon is moving aggressively to concentrate its portfolio around the Delaware and has all other assets under expeditious review."

--------Other Regions. "Anadarko and Bakken look to be on track to keep and work in the short term. The Marcellus is the most strategic asset under review and time will tell if Stone Ridge's $8B unsolicited offer pushes to a sale. The Eagle Ford is the smallest asset in the portfolio and could draw strong offers for strategic buyers - may be a likely divestiture candidate."

--------What's 1+1?. "In practice, the $58B all stock Devon-Coterra merger, (with the winning vanity plate going to "Devon", at the expense of our suggested Devonterra) still runs execution risk and the ultimate question if 1+1 can ever equal 3 in the M&A world."

--------Flight Path?. "There may be, however, a path to redemption up to and after the Q2 26 close, when New

Devon prioritizes swift divestments of less valued assets."

--------The Debate Continues. "Pure plays are the soup du jour and include names like Diamondback (Midland Basin), Matador and Permian Resources (Delaware), Chord (Bakken), Mach (Anadarko), Magnolia (Eagle Ford), Comstock (Haynesville), Talos (Gulf) and EQT, Range and Antero (Appalachia)."

--------Sheffield Brand. "Sheffield is a storied statesman who has managed it all, but his best success seemed to come when he kept it simple. We expect to push for a 'takeout premium' or 'a clear, value-creative Permian directive.'"

------- The Debate Begins. "A merger would be #1 Super Independent & #1 Delaware player by volume. Pure play shrink route leaves Delaware vols of 367,000 Boepd and war chest."

------- Imagine. "A combination of two independents (1.6 MMboepd) would surpass COP Lower 48 (1.5 MMboepd), EOG (1.4 MMboepd) and OXY L48 (1.2 MMBoepd).

--------Delaware Leader. "Together, Devonterra would be the leader in the Delaware volumes (863,000 Boepd) and be the Delaware’s top driller with 20 rigs running (Coterra 9x plus Devon 11x) jumping ahead of EOG (14x) and Permian Resources (12x)."

Below are excerpts from our previous reports.

Alert #3 Excerpt: What's 1+1? The Devon-Coterra Merger's Risky Arithmetic --

Alert #2 Excerpt: The Debate Continues (2 page report) --

Alert #1 Excerpt: The Debate Begins (5 page report) --

Here is a table comparing Devon and Coterra and the company as merged---

The Continuing Series of Report on Coterra Change are available to the right.

Energy Advisors Group is working hard to expand our thought leadership leveraging our decades of industry expertise. We look forward to providing additional market insight for our clients through Market Monitor, Regional Perspectives, Deal Alerts and Quarterly M&A Outlook.

Our firm has been serving the needs of buyers, sellers and capital providers for over thirty-five years. We stand ready to assist asset owners in a competitive divestment process and to help buyers find off-market strategic assets for their portfolio. Call Rich Martin at 214-744-2495 or email [email protected] for a private consultation.

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