Devon Q1 2026 Brief: Coterra Merger, New Mexico Lease, and State-Source Activity

Devon's first-quarter update was both an operating report and a portfolio-transition event.

The company reported 833,000 Boe/d of average Q1 2026 production, including 387,000 bbl/d of oil. Devon also generated $1.7 billion of operating cash flow and $816 million of free cash flow, while investing $848 million of capital, which the company said was 6% below the midpoint of its guidance.

The larger changes came after quarter-end. Devon and Coterra completed their all-stock merger on May 7, 2026, creating a larger shale operator anchored by the Delaware Basin. Former Devon shareholders own about 54% of the combined company and former Coterra shareholders own about 46%. Devon said combined full-year guidance is expected in mid-June 2026.

Two weeks later, Devon announced another Delaware Basin move: the acquisition of 16,300 net undeveloped acres in Lea and Eddy Counties, New Mexico through a Bureau of Land Management oil and gas lease sale for approximately $2.6 billion. Devon said the acquired position adds about 400 net locations normalized to two-mile laterals.

Devon Q1 2026 company-reported metrics and Energy-NetWatch public-record activity context for Devon and Coterra.

Devon Q1 2026: What Changed

Devon's Q1 materials showed a steady operating quarter before the portfolio reset. The company reported production in line with guidance, oil production at the top end of guidance, and lower capital than the midpoint of the plan.

The Coterra merger and New Mexico lease acquisition change the operator screen. Public records do not always collapse immediately into a single parent-company name, so Devon, Coterra, and legacy operating labels should be followed together when looking at post-close activity.

New Mexico State-Source Activity To Watch

Energy-NetWatch's current public-record view gives two useful activity layers around the Devon/Coterra story: New Mexico permits and reported spuds, plus Devon Williston production as a separate Rockies context point.

The New Mexico rows are useful because Devon and Coterra both show recent state-source activity in the same basin family highlighted by the merger and lease announcements. Devon's row is permit-heavy in this reviewed window. Coterra's row is smaller by permit count, but it has a higher reported-spud ratio in the displayed pull.

The North Dakota row adds a different basin view. Devon Energy Williston showed 3.0M bbl of oil and 13.2 Bcf of gas in the Energy-NetWatch March 2026 full-month production snapshot. That does not describe Devon's full corporate production, but it gives a concrete Williston Basin operator record to monitor after the portfolio reset.

Energy-NetWatch New Mexico activity detail for Devon and Coterra state-source labels in the reviewed May 2026 snapshot.

New Mexico Peer Context

The Devon/Coterra rows become more useful when they are read against the broader New Mexico operator set. In the reviewed Energy-NetWatch pull, the trailing 90-day window contained 694 permit records and 85 reported spud records. Eddy and Lea counties accounted for 653 of those displayed permit records.

Devon ranked third in this displayed New Mexico permit set, behind Permian Resources and Mewbourne. Coterra ranked eighth by permit count, but its 7 reported spuds put it closer to Devon on drilling-start activity than the permit count alone suggests.

That distinction matters for the merger read. Permits show planned or authorized activity. Reported spuds show where drilling starts have begun appearing in state records. A combined Devon/Coterra screen should track both fields, because the two operators do not show the same permit-to-spud pattern in this window.

Eddy And Lea County Context

Devon's displayed New Mexico activity was concentrated in Eddy County, while Coterra's top county in the reviewed pull was Lea County. Devon's May 21 lease announcement also points to Lea and Eddy Counties, making the county read more relevant than a statewide headline alone.

The practical question after the merger and lease acquisition is where activity shows up first: Eddy County permits, Lea County permits and reported spuds, or later production-month updates.

What To Watch Next

Bottom Line

Devon's Q1 2026 report showed solid operating performance before a major portfolio change. Production was in line with guidance, oil was at the top end of guidance, free cash flow was strong, and capital came in below the guidance midpoint.

The Coterra merger and the New Mexico lease acquisition change the operator screen. The Energy-NetWatch read is to watch Devon and Coterra labels together in New Mexico, then track whether permit activity, reported spuds, and production records begin to show the combined company's operating priorities.

For current operator records, aliases, permits, wells, production histories, infrastructure records, exports, alerts, and API access, request Energy-NetWatch access.

Frequently Asked Questions

What did Devon report for Q1 2026 production?

Devon reported 833,000 Boe/d of average Q1 2026 production, including 387,000 bbl/d of oil.

When did Devon and Coterra complete the merger?

Devon and Coterra completed the all-stock merger on May 7, 2026. Devon said combined full-year guidance is expected in mid-June 2026.

Why are Devon and Coterra New Mexico records read separately?

State-source records preserve operating labels. After a merger, public records can continue to appear under separate Devon, Coterra, and legacy labels before company-level reporting fully consolidates the story.

What does Energy-NetWatch show for Devon and Coterra in New Mexico?

The reviewed Energy-NetWatch New Mexico snapshot shows Devon Energy Production Company, LP with 69 trailing 90-day permits and 8 reported spuds, and Coterra Energy Operating Co. with 25 trailing 90-day permits and 7 reported spuds.

Why do permits and reported spuds both matter?

Permits show planned or authorized activity. Reported spuds show where drilling starts have begun appearing in state records. Reading both together gives a cleaner view of activity follow-through than either field alone.

Related Energy-NetWatch Pages

• New Mexico drilling permits by operator: May 2026 snapshot
• New Mexico oil and gas production data
• North Dakota operator production: March 2026 snapshot
• How to track drilling permits by operator
• Energy-NetWatch coverage

Data Notes

• Company figures are from Devon's Q1 2026 earnings release and presentation.
• Merger details are from Devon's May 7, 2026 merger close release.
• Lease acquisition details are from Devon's May 21, 2026 Delaware Basin lease release.
• Energy-NetWatch figures are reviewed public state-source snapshots: New Mexico permit/spud records reviewed May 20, 2026, and North Dakota March 2026 modeled production reviewed May 20, 2026.
• Company-reported production and state-source records answer different questions. Company figures describe corporate quarterly performance. State-source records support operator, state, county, permit, well, and production-month review.

Sources

• Devon Q1 2026 earnings release
• Devon Q1 2026 earnings presentation
• Devon and Coterra merger close release
• Devon and Coterra merger announcement
• Devon New Mexico Delaware Basin lease acquisition release