Skip to content
AnalystLens

DEVON ENERGY CORP/DE 8-K Report, Financial Results (Feb 17, 2026)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 17, 2026
Period End
February 17, 2026
Security
DVN
In the record · 2016–202610-K1210-Q328-K123

DVN filed 12 annual reports (10-K), 32 quarterly reports (10-Q) and 123 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Jul ’19Jul ’19
  2. Deal closed8-K · Feb ’21Feb ’21
  3. Leadership change8-K · Jan ’23Jan ’23
  4. Leadership change8-K · Mar ’25Mar ’25

01—Abstract

Summary

Summary of the 8-K filed February 17, 2026. Cited figures are marked; the original filing is the authoritative source.

Devon Energy reported fourth-quarter and full-year 2025 results on February 17, 2026, with the headline being a transformative all-stock merger with Coterra Energy (announced February 2, 2026, expected to close in Q2 2026).

Devon shareholders will own about 54% of the combined company. Q4 2025 net earnings were $562 milliona ($0.90 per diluted share), and core earnings were $510 million ($0.82 per share). Operating cash flow was $1.5 billion and free cash flow was $702 million.

Production averaged 851 MBoe/d, with oil at 390 MBbl/d, above the top end of guidance. Capital spending of $883 millionb came in 4% below midpoint guidance, and operating costs fell 8% versus Q1 2025. Management has achieved 85% of its $1 billion business optimization target and expects to complete it by year-end 2026.

For shareholders, the key capital return changes are tied to the merger close. Devon plans to raise its quarterly dividend 31% to $0.315c per share and establish a new share repurchase authorization above $5 billion, both subject to board approval. Buybacks under the existing $5 billion program are suspended and expected to remain so through closing.

The company ended 2025 with $1.4 billiond in cash, $8.4 billion of debt, $3 billion undrawn on its credit facility, and a net debt-to-EBITDAX ratio of 0.9x, a solid balance sheet heading into the merger. The 2026 standalone guidance (production of 835-855 MBoe/d, capex of $3.5-3.7 billion) does not include Coterra. Devon will issue combined-company guidance at close, so investors will have limited forward visibility until then.

Q1 2026 production is expected to be reduced by about 10,000 Boe/d due to severe winter weather. The release also contains a strong reserve replacement story: 2025 additions of 593 MMBoe replaced 193% of production at a finding and development cost of $6.14 per Boe.

02—Key points

Key Highlights

  1. Pending all-stock merger with Coterra Energy (announced Feb. 2, 2026), expected to close Q2 2026; Devon holders to own ~54% of combined company, with $1.0 billion of targeted annual pre-tax synergies
  2. Q4 2025 GAAP net earnings of $562M ($0.90/diluted share); core earnings of $510M ($0.82/share)
  3. Q4 2025 operating cash flow of $1.5B and free cash flow of $702M; full-year 2025 free cash flow of $3.1B
  4. Q4 2025 production of 851 MBoe/d (oil 390 MBbl/d), above top end of guidance; capex of $883M, 4% below midpoint
  5. Planned post-merger quarterly dividend increase of 31% to $0.315/share and new $5B+ buyback authorization, both subject to board approval; buybacks suspended pending close
  6. Balance sheet: $1.4B cash, $8.4B total debt, $3B undrawn revolver, net debt-to-EBITDAX of 0.9x
  7. 2025 reserves of 2.4 billion Boe with 193% reserve replacement and $6.14/Boe F&D cost; 85% of $1B business optimization target achieved

03—Questions

Frequently Asked Questions

  1. What is the most significant event in this filing for shareholders?

    The pending all-stock merger with Coterra Energy is the most important development. Devon shareholders would own about 54% of the combined company, and the deal is expected to close in Q2 2026 with $1.0 billion of annual pre-tax synergies targeted.

  2. Will Devon's dividend and buybacks change?

    Yes, but only after the merger closes and subject to board approval. Devon plans to raise the quarterly dividend 31% to $0.315 per share and establish a new share repurchase authorization above $5 billion. Until then, share repurchases are suspended, and the current dividend is $0.24 per share for Q1 2026.

  3. Why does the 2026 guidance matter less than usual?

    The full-year 2026 guidance covers only standalone Devon operations and excludes Coterra. Combined-company guidance will be issued at merger close, so investors should expect updated outlook figures in Q2 2026.

  4. How did Devon perform in Q4 2025 relative to expectations?

    Devon beat its own guidance on several measures. Production of 851 MBoe/d and oil of 390 MBbl/d exceeded the top end of guidance, capex was 4% below midpoint, and per-unit production costs were 3% below guidance. Core earnings of $0.82 per diluted share were the figure analysts typically use for comparison.

  5. Is Devon's balance sheet strong enough to support the transition?

    Devon's balance sheet is solid. Net debt-to-EBITDAX was 0.9x at year-end 2025, with $1.4 billion of cash and $3 billion available under its undrawn credit facility against $8.4 billion of total debt. Full-year 2025 free cash flow of $3.1 billion further supports deleveraging and shareholder returns.

04—Continue

← View all 8-K filings