Devon Energy faces push for strategic review

• Devon Energy (NYSE:DVN) received a letter from Toms Capital Management urging the company to explore strategic alternatives, including a potential sale.
• Devon shares rose about 3% on Wednesday, bringing their 2026 gain to more than 31%.
• Toms said Devon’s asset complexity following the Coterra Energy merger has affected valuation and called for changes to the company’s structure

Devon Energy (NYSE:DVN) received a letter from Toms Capital Management urging the company to explore strategic alternatives, including a potential sale of the entire company.

Toms Capital said it has become one of Devon’s five largest shareholders and argued that the company’s combined asset portfolio has become complex following its merger with Coterra Energy.

Toms Capital said Devon trades at a discount compared with comparable companies and estimated the company’s valuation gap at more than one EBITDA multiple point, according to CNBC.

Following the announcement, Devon Energy's share price rose about 3% on Wednesday, bringing its 2026 gain to more than 31%.

Devon expanded its asset base through the Coterra Energy merger, adding exposure to additional basins including the Marcellus, Eagle Ford, and Powder River basins alongside its Delaware Basin operations.

The activist campaign follows separate calls from Kimmeridge, another energy-focused investor, for Devon to simplify its portfolio and clarify its strategic direction after the Coterra transaction.