DVN · Devon Energy Corporation

Devon Energy's 8-K provides unaudited pro forma combined financial statements illustrating the impact of its proposed merger with Coterra Energy Inc., agreed on February 1, 2026. Under the terms, Coterra shareholders receive 0.70 shares of Devon common stock per Coterra share, with preliminary consideration valued at $23,386 million based on 759.3 million Coterra shares outstanding and Devon's March 3, 2026 closing price of $44.00. The pro forma balance sheet as of December 31, 2025, reflects combined total assets of $66,715 million, including $58,352 million in property and equipment, net, driven by $10,875 million merger adjustments primarily to oil and gas properties, offset by debt reduction and deferred tax increases. Total debt stands at $10,940 million, with equity at $38,875 million after accounting for the share exchange and elimination of Coterra's equity. The pro forma statement of operations for the year ended December 31, 2025, assumes merger completion on January 1, 2025, showing revenues of $24,805 million, up from Devon's historical $17,188 million due to Coterra's oil, gas, and NGL sales integration, with net earnings attributable to Devon at $3,768 million or $4.17 diluted EPS on 1,164 million shares. Adjustments total $767 million, including $717 million depreciation and $50 million other expenses related to the transaction. These figures use preliminary fair value estimates for acquired assets and liabilities, derived from SEC filings, valuations, and due diligence, and exclude expected synergies or cost savings. Investors should note the preliminary nature, as final allocations post-closing could materially differ based on stock price at closing, reserve estimates, and commodity prices, potentially impacting depreciation, taxes, and overall financial position.