Devon Energy targets $2B synergies and strong cash flow post $28B Coterra deal, with 70% FCF to shareholders.

Devon Energy, now a $50 billion upstream company after acquiring Coterra for $28 billion, aims to achieve $2 billion in synergies by the end of 2027. The merger boosts production guidance to 1.4 million barrels per day and plans $4.9 billion in capital expenditure. The company expects strong free cash flow, with $800 million quarterly pre-merger, and intends to return up to 70% of free cash flow to shareholders through dividends and share buybacks. While offering a 2.5% dividend yield and manageable debt, Devon Energy remains exposed to oil price volatility, which is the main risk factor.