> ## Content Index > Fetch the complete content index at: https://www.bullished.co/llms.txt > Use this file to discover other available public pages before exploring further. # Devon Energy Expects More Than $1 Billion In Fourth-Quarter Buybacks As Merger Benefits Grow - URL: https://www.bullished.co/devon-energy-expects-more-than-1-billion-in-fourth-quarter-buybacks-as-merger-benefits-fa84d72b/ - Published: 2026-11-06T13:56:44.000Z - Updated: 2026-11-06T13:56:44.000Z - Description: The oil and gas producer raised its merger-benefit outlook and plans to use Eagle Ford sale proceeds for buybacks and debt repayment. - Author: Matteo Parrino - Tags: Deals, DVN, Industry: Energy [Devon Energy](https://www.bullished.co/tag/dvn/), which produces oil, natural gas and natural gas liquids in the U.S., expects [share repurchases above](https://www.sec.gov/Archives/edgar/data/0001090012/000119312526449884/d120646dex991.htm?ref=bullished.co) $1 billion in the fourth quarter, compared with $414 million in the third. The company generated $2.8 billion in third-quarter operating cash flow and raised its merger-benefit outlook Thursday, according to earnings materials accompanying its [SEC filing](https://www.sec.gov/Archives/edgar/data/0001090012/000119312526449884/d120646d8k.htm?ref=bullished.co). ## Eagle Ford Cash For Buybacks Devon bought 8.9 million shares in the third quarter. Since its $8.0 billion repurchase program began in May, purchases have totaled $617 million for 13.3 million shares, leaving $7.4 billion available under an authorization lasting through mid-2029. The next source of buyback funding is the [Eagle Ford sale](https://www.sec.gov/Archives/edgar/data/0001090012/000119312526449884/d120646dex991.htm?ref=bullished.co), announced October 8\. Devon agreed to sell those assets for $4.2 billion in cash and expects approximately $3.5 billion after taxes and effective-date adjustments. Management plans to put that money toward additional repurchases and debt repayment, with closing expected in early 2027. Debt repayment is already underway: Devon retired the remaining $750 million term loan during the quarter, taking debt reduction since the Coterra merger closed to $1.25 billion. Management plans another $1.5 billion in long-term debt repayments to reach its $9 billion gross-debt target in early 2027. Devon ended the quarter with $10.6 billion of debt, $10.2 billion of net debt, $0.4 billion in cash and a $3.0 billion unused credit facility. The board also declared a fourth-quarter dividend of $0.32 per share, payable December 30, 2026. ## Merger Benefits Running Ahead The third quarter was Devon’s first full quarter operating the combined business. Adjusted operating cash flow totaled $3.5 billion, while [adjusted free cash](https://www.sec.gov/Archives/edgar/data/0001090012/000119312526449884/d120646dex992.htm?ref=bullished.co) flow reached $2.0 billion. That measure subtracts capital spending, excluding acquisitions, from operating cash flow adjusted for balance-sheet changes and after-tax restructuring costs. Net earnings were $1.0 billion, or $0.88 per diluted share; adjusted earnings were $1.6 billion, or [$1.42 per](https://finance.yahoo.com/markets/stocks/articles/devon-energy-dvn-beats-q3-214507666.html?.tsrc=rss&ref=bullished.co) diluted share. The adjustments included $563 million in after-tax financial-instrument valuation changes and $55 million in after-tax restructuring and transaction costs. Devon now expects approximately $350 million in annualized pre-tax merger benefits entering year-end, 75% above the $200 million outlined in August. Those benefits span capital spending, operating margins and corporate costs. Expected average benefits for 2027 rose to approximately $700 million from $600 million. Devon kept its target of at least $1.0 billion in annualized pre-tax benefits by year-end 2027. ## Production Holds, Gas Access Expands Devon’s business centers on onshore U.S. oil and gas production, with the Delaware Basin its largest and most active program. The combined portfolio also includes production in the Rockies, Anadarko, Eagle Ford and Marcellus. Third-quarter [production averaged](https://www.sec.gov/Archives/edgar/data/0001090012/000119312526449884/d120646dex992.htm?ref=bullished.co) 1,668,000 barrels of oil equivalent daily, including 553,000 barrels of oil. Output met guidance despite completion timing holding Eagle Ford oil production below expectations; other assets offset that shortfall, led by Permian oil output of 389,000 barrels daily. Devon kept its full-year production and spending forecasts unchanged. Fourth-quarter guidance calls for 1,660,000–1,700,000 barrels of oil equivalent daily, including 550,000–560,000 oil barrels, and capital spending of $1,290 million–$1,395 million. For 2027, excluding Eagle Ford, Devon initially expects approximately 525,000 oil barrels daily and approximately 1,600,000 barrels of oil equivalent daily on approximately $5.3 billion in capital spending. Management forecasts oil production growth of 1–3% on that sale-adjusted basis. Devon also bought a 25% stake in the Solitude Pipeline System and secured transportation capacity. The venture is building natural gas pipelines between the Permian Basin and Texas Gulf Coast; Devon expects access to Gulf Coast and liquefied-natural-gas-linked pricing to improve realized gas prices once the system starts service. Devon plans to provide its full 2027 forecast with fourth-quarter results in February. Learn - [Item 2.02: results of operations →](https://www.bullished.co/learn/8-k-items-explained/#item-202-results-of-operations) From 8-K Items Explained: What Every Item Code From 1.01 To 9.01 Tells You, With Examples ### Sources - [8-K Filing — DEVON ENERGY CORP/DE (DVN)](https://www.sec.gov/Archives/edgar/data/0001090012/000119312526449884/d120646d8k.htm?ref=bullished.co) — SEC EDGAR - [Exhibit d120646dex991.htm — DEVON ENERGY CORP/DE 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001090012/000119312526449884/d120646dex991.htm?ref=bullished.co) — SEC EDGAR - [Exhibit d120646dex992.htm — DEVON ENERGY CORP/DE 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001090012/000119312526449884/d120646dex992.htm?ref=bullished.co) — SEC EDGAR - [Devon Energy (DVN) Beats Q3 Earnings Estimates](https://finance.yahoo.com/markets/stocks/articles/devon-energy-dvn-beats-q3-214507666.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance ### More on Devon Energy - [Devon Energy Agrees To Sell Eagle Ford Assets To Crescent For $4.2 Billion Cash](https://www.bullished.co/devon-energy-agrees-to-sell-eagle-ford-assets-to-crescent-for-4-2-billion-cash-06f230b1/) [All Devon Energy (DVN) coverage →](https://www.bullished.co/tag/dvn/)