Kimmeridge's Analysis on the Merger Between Coterra and Devon Energy

On February 2, 2026, Kimmeridge Energy Management Company, a leading private investment firm dedicated to the energy sector, made headlines by commenting on the recent announcement of an all-stock merger between Coterra Energy and Devon Energy. As a notable shareholder of both companies, Kimmeridge expressed its backing for the merger, citing its potential to create significant shareholder value.

Mark Viviano, Managing Partner at Kimmeridge, articulated the firm’s belief that the merger could serve as a catalyst to unlock this added value. However, he also underscored the necessity of strategic actions, specifically portfolio rationalization and a sharpened focus on the Delaware Basin, to realize this potential fully. With the official nomination of board members already submitted by Kimmeridge, Viviano awaits further details on Coterra's proposed slate of nominees and the S-4 merger filing. Such disclosures will provide deeper insight into the competitive deliberations undertaken by Coterra's Board in reaching this merger agreement.

This support follows Kimmeridge's prior communication with Coterra’s Board of Directors, where an open letter dated November 4, 2025, laid out crucial steps intended to rectify governance issues and enhance shareholder value. The proactive engagement from Kimmeridge highlights its commitment to ensuring that both companies navigate the complexities of this merger smoothly and effectively.

About Kimmeridge Energy Management Company

Founded in 2012, Kimmeridge is an alternative asset manager that specializes exclusively in the energy sector. The firm distinguishes itself through its direct investment strategy, comprehensive technical expertise, vigilant portfolio management, and rigorous research capabilities. Alongside these core competencies, Kimmeridge has made public engagement a key aspect of its strategy since early 2020. This initiative aims to reform the energy public sector, delivering differentiated returns for its stakeholders.

Under the leadership of Managing Partner Mark Viviano, Kimmeridge’s performance has been impressive, consistently outperforming the S&P 500 and relevant indices by double over the years. Viviano, bringing nearly two decades of experience from Wellington Management where he oversaw equity research in North American and international energy sectors, has been pivotal in guiding Kimmeridge's strategy and vision.

As the merger proceedings unfold, stakeholders and industry observers will closely monitor Kimmeridge’s actions and insights, especially regarding how they influence the overall merger strategy between Coterra and Devon. The anticipated outcomes of this merger could have lasting impacts on the energy sector, with potential implications for governance, operational efficiency, and shareholder engagement.

In conclusion, Kimmeridge’s active involvement signifies a shift towards a more transparent and strategically aligned future for both Coterra and Devon Energy. By advocating for robust governance practices and a focused operational strategy, Kimmeridge aims to ensure that this merger is not just another corporate consolidation, but a transformative step forward for both entities in the energy industry.