11/6/2026
Toms Capital Management and Kimmeridge Energy Management Renew Calls for Devon Energy to Sell Itself
Seeking Alpha (11/06/26) Surran, Carl
Devon Energy (NYSE: DVN) edged higher in Friday's trading after reporting better than expected Q3 adjusted earnings, and two investors renewed calls for the company to sell itself. Q3 net profit rose to $1.01 billion, or $0.88/share, from $687 million, or $1.09/share, revenue jumped 58% Y/Y to $6.86 billion, and production nearly doubled to 1.66 million boe/day from the year-earlier quarter, boosted by the Coterra Energy acquisition. Devon said it completed the strategic review of its assets, which was launched following investor pressure to streamline its portfolio, and it now plans to focus on Permian operations while retaining its Anadarko, Marcellus, and Rockies assets. The plan suggests "additional divestitures are unlikely to be imminent and would instead be opportunistic," Siebert Williams Shank analyst Gabriele Sorbara said. "Along with the soft third-quarter oil production and fourth-quarter guidance, this could put some pressure on the stock." Toms Capital Management said it is "profoundly disappointed that Devon has concluded its strategic review and determined that not selling additional assets represents the best path forward." "We are confident that interested parties exist for the entire company who would be willing to pay a substantial premium, and we expect the board to follow through on its commitment to engage with them," Toms Capital said. Separately, Kimmeridge Energy Management said that retaining Anadarko, Marcellus, and Rockies assets dilutes the strategic focus of the company. "Calling these assets 'complementary' does not make them strategic, it simply underscores the board's unwillingness to make the difficult decisions necessary to unlock shareholder value," Kimmeridge managing partner Mark Viviano told Bloomberg. "The Devon board has forfeited any credibility to pursue yet another standalone strategy, and a sale of the entire company should be pursued."
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