Corporate Analysis: Devon Energy Lower 48 Inventory

The Devon-Coterra merger creates a Delaware Basin powerhouse with more sub-$60/bbl inventory than any other operator and over 20 years of remaining development runway.

10 Jun 2026
Robert Polk
2 min read

The $60 B all-stock merger between Devon Energy and Coterra Energy creates the largest US independent producer in terms of Lower 48 net production based on FY2025 pro forma output. Leading Lower 48 scale was not the explicit goal with the merger and anticipated portfolio rationalization means Devon will not maintain that specific standing long-term, but the merger creates a Delaware Basin powerhouse with added diversification and capital optionality.

Devon has more sub-$40, sub-$50, and sub-$60 breakeven locations than any other Delaware operator. ~4.7 MM combined lateral feet with a first production date in 2025 implies 20.5 years of remaining inventory, including 17.5 years of sub-$60/bbl inventory.
Delaware inventory and competitive economics are further augmented by incremental low-royalty locations from $2.6 B in winning bids in the recent BLM New Mexico lease sale.
If the Delaware Basin is the crown jewel, the Anadarko appears to be a core secondary basin with a role in the go forward portfolio. The combined footprint offers 3,883 remaining locations, easily the most in the basin.
Devon’s Williston position holds 858 locations with an NPV25 breakeven below $75/bbl, equal to ~11 years of drilling inventory at 2025’s pace. The Powder River also sits in the Rockies reporting segment. The asset remains at an appraisal stage, but seems like an emerging oil opportunity that Devon plans to continue derisking.
The Eagle Ford and Marcellus positions appear to be the most logical divestiture candidates. Devon’s legacy Eagle Ford position is mature and holds the shortest overall runway of any asset at ~7.5 years. The Coterra legacy Marcellus asset also has limited remaining inventory and appears increasingly management-orphaned relative to other Coterra assets that offer overlap and greater synergy potential with Devon’s assets.

Figure 1: Delaware Basin – NPV25 Breakeven Distribution, Undrilled Locations Only ($/bbl WTI)

Density plot of NPV25 Breakeven for Delaware Ex. DVN and CTRA, including Devon Energy Lower 48 inventory assessment, with vertical dashed lines marking each group’s mean. — Source: Novi Intelligence

The full Devon corporate report is now available on the Novi Intelligence portal

Our inaugural Devon corporate note focuses on the depth and quality of its Lower 48 inventory across all existing assets, including strategic considerations as the company conducts a comprehensive portfolio review. https://intelligence.novilabs.com/login/

Robert Polk

Robert Polk is a Research Director at Novi Labs, primarily focusing on Corporate Research. He possesses 15 years of energy finance experience across banking, research, and consulting. Leveraging Novi’s proprietary inventory and production forecasts enables differentiated research for assessing asset quality and depth and its impact on financial performance.

Robert Polk
Robert Polk is a Research Director at Novi Labs, primarily focusing on Corporate Research. He possesses 15 years of energy finance experience across banking, research, and consulting. Leveraging Novi’s proprietary inventory and production forecasts enables differentiated research for assessing asset quality and depth and its impact on financial performance.