Devon Energy says it will maintain a significant presence in Oklahoma City even as it plans to move its corporate headquarters to Houston following a proposed merger with Coterra Energy.
Monday’s announcement of the merger has raised questions about local operations, employees and the future role of Oklahoma City in the company’s long-term strategy.
Devon Energy and Coterra Energy say the all-stock merger will strengthen their Delaware Basin footprint and drive long-term per-share growth.
The all-stock merger, announced Monday, is expected to close in the second quarter of 2026, pending regulatory and shareholder approvals. The combined company will keep the Devon Energy name and is projected to generate $1 billion in annual pre-tax synergies.
Oklahoma City Operations to Remain
Devon says Oklahoma City will continue to have a “significant presence” after the merger, though the company did not define what operations will remain local or how many employees will be based in the city long term. Devon currently has thousands of employees in Oklahoma City and is a major downtown presence through Devon Tower.
As for the fate of Devon Tower itself, no information has been released concerning a potential vacancy by Devon Energy or a possible sale.
Company leadership said executive leadership and the corporate headquarters will be based in Houston, while operational and technical functions will continue to be supported across the company’s footprint, including Oklahoma.
Devon Energy and Coterra Energy announced an all-stock merger that would combine operations and reshape the future of both companies. Read along to see what we know about the merger.
Uncertainty Around Jobs and Office Space
The companies did not announce any layoffs tied directly to the merger. However, the deal includes plans to achieve $1 billion in annual pre-tax cost savings by the end of 2027 through operational efficiencies, capital optimization and streamlined corporate costs.
How much of that cost reduction could affect Oklahoma City jobs or office space has not been detailed. The lack of specifics leaves open questions about employee retention and the long-term use of Devon Tower.
Devon Energy plans to relocate its headquarters as part of a merger with Coterra Energy, raising questions about jobs, Devon Tower and Oklahoma’s energy sector.
Oklahoma Assets Still Part of Devon’s Portfolio
While the merger is anchored by a major expansion in the Delaware Basin, Coterra also brings significant operations in Oklahoma’s Anadarko Basin. The combined company said more than half of its production and cash flow will come from the Delaware Basin, but Oklahoma assets remain part of its diversified portfolio.
Industry leaders say the Devon-Coterra merger reflects decades of oil and gas consolidation, while underscoring Oklahoma’s track record of growing small, independent companies into national energy players.
The companies say the combination will create one of the world’s largest shale producers, with production exceeding 1.6 million barrels of oil equivalent per day.
Leadership and Decision-Making Shift to Houston
Following the merger, Devon President and CEO Clay Gaspar will lead the combined company, with Coterra Chairman, CEO and President Tom Jorden serving as non-executive chairman of the board. Executive leadership will be based in Houston, and the post-merger board will consist of 11 members, six from Devon and five from Coterra.
What Comes Next for Oklahoma City
Devon and Coterra say additional details about integration plans will be shared as the transaction moves toward closing. For now, Oklahoma City leaders, employees and businesses tied to Devon’s downtown presence are watching closely for clarity on staffing levels, office use and the company’s long-term footprint in the city.
The merger is expected to be finalized next year, setting the stage for further decisions about how operations will be split between Houston and Oklahoma City.
