Devon Energy provides an updated outlook for the combined company following the recent completion of its transformative merger with Coterra Energy. 

KEY HIGHLIGHTS

• Combined Production Outlook: Production is expected to average 1.380 million barrels of oil equivalent per day for 2026, including oil volumes of 500,000 barrels per day.
• Capital Investment Plan: Full year 2026 capital spending is expected to total approximately $4.9 billion, with more than 60% allocated to the Permian Basin. The plan reflects a disciplined activity level of 31 rigs and 10 completion crews, with 460 to 480 net wells expected online, optimized for free cash flow generation.
• Enhanced Shareholder Returns: The company is targeting the return of up to 70% of free cash flow to shareholders, through a quarterly fixed dividend of $0.32 per share and the previously announced $8 billion share repurchase authorization.
• Balance Sheet Strength: Maintaining an investment grade balance sheet with ample liquidity to fund the capital program through commodity cycles. We expect to retire $1.25 billion of debt in 2026.
• Portfolio Review Underway: We will provide timely updates as we move expeditiously to concentrate the portfolio around our premier Permian position, enabling improved shareholder returns. 
• Synergy Capture: The company is accelerating synergy capture and expects to capture $600 million in 2027 and is on track to deliver $1.0 billion of annual pretax synergies on a run-rate basis by year-end 2027. Shared best practices and technology are driving material progress on capital optimization, operating margin improvements, and corporate cost structure.

"We are excited to share our initial outlook for the combined company," said Clay Gaspar, president and CEO. "We are carrying a sense of urgency into all aspects of our business, including integration, execution, and our portfolio review. Today’s guidance underscores the strength of our newly combined platform as one of the largest and most efficient E&P companies. Optimizing our portfolio remains a top priority, and a complete review of our strategic and financial criteria is well underway. We are confident in our ability to translate the power of this combination into durable free cash flow growth and improved shareholder returns."

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