Devon’s natural gas output to more than double in 2026 post Coterra merger

Devon Energy Corp. (NYSE: DVN) recently announced an all-stock merger with Coterra Energy Inc. (NYSE: CTRA), in a transaction that brings diversity to Devon’s portfolio. The transaction is expected to close in the second quarter of 2026.

The combined group will be retaining the Devon name, with Devon as the surviving entity. Strategically, the tie-up marries Devon’s scale in the oil-rich Delaware Basin with Coterra’s high-margin gas position in the Marcellus, expanding its reach, while also making it less impacted by fluctuations in oil prices.

The acquisition materially increases Devon’s exposure to natural gas at a time when producers are seeking greater balance between oil and gas revenues, and when long-term demand expectations are being reshaped by LNG exports and power demand from data centers.

Visible Alpha consensus estimates illustrate the scale of the transformation. Devon’s total natural gas production is expected to more than double to 1,074 Bcf in fiscal 2026, up from 505 Bcf last year. On a daily basis, output is projected to rise to 2,942 MMcf, compared with 1,382 MMcf in 2025.

That surge in volumes is expected to feed through to revenues. Natural gas revenues, excluding hedging, are forecast to increase 190% year-on-year to $2.4 billion in 2026, up from $842 million last year.

The deal also meaningfully alters Devon’s revenue composition. Natural gas, accounting for about 5% of total revenue in 2025, is projected to climb to 15% in 2026 and to 22% by 2027.

This article was published by Visible Alpha, part of S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.