Devon Energy Reports $69.45 Billion Pro Forma Assets and $0.35 Q1 EPS After Coterra Merger
Devon Energy disclosed pro forma financials showing $69.45 billion in total assets after its Coterra merger, with Q1 2026 earnings of $401 million and EPS of $0.35, plus FY 2025 earnings of $3.768 billion and EPS of $3.23.
TL;DR
Devon Energy disclosed pro forma financials showing $69.45 billion in total assets after its merger with Coterra, along with Q1 2026 earnings of $401 million and a diluted EPS of $0.35. The company also reported FY 2025 pro forma net earnings of $3.768 billion and EPS of $3.23. These figures give a preliminary view of the combined company’s scale and profitability before expected synergies are realized.
Context
Devon Energy closed its acquisition of Coterra in the first quarter of 2026, combining two mid‑size exploration and production firms. To help investors understand the impact, the company filed unaudited pro forma statements that present the balance sheet and income statement as if the merger had occurred at the start of the periods shown.
Pro forma numbers exclude any cost‑saving synergies and are labeled preliminary because the final fair‑value purchase‑price allocation has not yet been completed. This approach is standard in SEC filings after major acquisitions.
The filing appeared as Exhibit 99.1 in Devon’s 8‑K submitted on May 22, 2026.
Key Facts
The pro forma balance sheet dated March 31 2026 lists total assets of $69,451 million, which the company rounds to $69.45 billion. For Q1 2026, the combined entity recorded net earnings of $401 million; dividing by the weighted‑average diluted shares outstanding yields a diluted EPS of $0.35. For the full fiscal year 2025, pro forma net earnings were $3,768 million, producing a diluted EPS of $3.23.
All figures are presented before any anticipated synergies from the merger, such as reduced operating costs or improved asset utilization. Devon noted that the weighted‑average diluted shares outstanding for Q1 2026 were approximately 1.15 billion.
What It Means
With nearly $70 billion in assets, Devon now ranks among the largest independent U.S. oil and gas producers by balance‑sheet size. The expanded asset base enhances its borrowing capacity and provides more flexibility for capital‑intensive projects like offshore drilling or acquisitions. The modest Q1 EPS reflects that the merger closed late in the quarter, limiting the contribution from Coterra’s operations.
The FY 2025 EPS of $3.23 illustrates the earnings power of the combined asset portfolio before integration benefits are realized. Investors typically watch for the final purchase‑price allocation, any announced cost‑saving targets, and how management plans to allocate the increased cash flow. Leverage ratios, such as debt‑to‑EBITDA, are expected to remain within the company’s historical range despite the asset increase.
What to Watch Next
Analysts will focus on Devon’s upcoming earnings call for updates on integration milestones, revised guidance for the rest of 2026, and any disclosure of synergy‑related cost savings. They will also look for commentary on commodity price hedging and any adjustments to the capital‑expenditure plan.
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