Devon Energy (DVN) Q4 2025 Earnings Transcript

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Wednesday, February 18, 2026 astatine 11 a.m. ET

• President and Chief Operating Officer — Clay M. Gaspar

• Executive Vice President and Chief Financial Officer — Jeffrey L. Ritenour

• Executive Vice President, Exploration and Production — John D. Raines

• Executive Vice President and Chief Technology Officer — Trey Lowe

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Clay M. Gaspar: Thank you, Chris. Good morning, everyone, and acknowledgment for joining us. Today, we volition absorption connected Devon Energy Corporation’s beardown 4th fourth and afloat twelvemonth 2025 results. Before diving into those precise awesome results, I besides privation to screen the highlights of our precocious announced merger with Cotera Energy. I americium incredibly excited astir this merger and what it means for our shareholders. The operation of these 2 outstanding companies creates a wide way to superior worth instauration that neither institution could execute independently. The merger unites complementary portfolios with important and overlapping positions crossed the champion U.S. shale basins.

At the bosom of this combined portfolio is simply a world-class presumption successful the Delaware Basin, which volition make much than fractional of our full accumulation and currency flow, backed by a decade-plus of top-tier inventory. Beyond the Delaware, the geographic diverseness and balanced commodity premix supply spot passim the volatility of the commodity terms cycle. The standard and operational overlap of our combined level volition unlock important value. By implementing champion practices, optimizing our outgo structure, and maximizing our infrastructure utilization, we volition seizure important synergies. In total, we expect to present $1 cardinal successful yearly pretax run-rate synergies by year-end 2027.

To beryllium clear, these synergy targets are incremental to our concern optimization programme and bespeak existent operational and ratio gains. And importantly, if determination are immoderate nett reductions successful enactment levels, these superior savings volition beryllium incremental to our announced $1 cardinal target. I privation to stress that we person a beardown grounds of delivering connected these concern optimization wins. Our proven model and acquisition volition beryllium leveraged to identify, deliver, and pass these merger synergies. Another captious payment to this transaction is the enhanced escaped currency travel procreation from the pro forma company.

With this uplift, we program to accelerate superior returns to shareholders done higher dividends and expect a important caller stock repurchase authorization to present currency returns accordant with best-in-class peers. Bottom line, this transformative merger checks each the boxes and positions america to beryllium an manufacture person that delivers differentiated worth to investors. With that strategical perspective, fto america present crook backmost to Devon Energy Corporation’s awesome 4th fourth and afloat twelvemonth 2025 results, which show the beardown operational and fiscal momentum that we are bringing to this combination. Let america crook to descent 4 for a deeper look astatine however our disciplined execution delivered different 4th of exceptional results.