Activist Investors Say Devon Energy Too Slow with Asset Sales

In early May, Devon Energy completed its buyout of and merger with Coterra Energy, paying $21.4 billion in Devon stock (see Devon and Coterra Complete Merger, Launches $8B Buyback Program). After the merger, Devon CEO Clay Gaspar said his company was reviewing all of the combined assets with a view toward optimizing its portfolio. There was no specific timeline announced for the review, but analysts generally expected it to take up to a year. However, in comments made in June, Gaspar said the review would be “a month’s exercise, not a year’s exercise” (see Devon Energy CEO: Asset Review to Finish in Months, Not a Year). That's still not fast enough for activist investor Kimmeridge, which is pushing Devon to divest NOW.

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