EX-99.1

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UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS

On May 7, 2026, Devon Energy Corporation, a Delaware corporation (“Devon”), completed the previously announced transaction with Coterra Energy Inc., a Delaware corporation (“Coterra”), pursuant to the Agreement and Plan of Merger, dated as of February 1, 2026 (the “Merger Agreement”), which provided for, among other things, the merger of Cubs Merger Sub, Inc., a Delaware corporation and a then direct, wholly owned subsidiary of Devon, with and into Coterra, with Coterra surviving as a direct, wholly owned subsidiary of Devon (the “merger”). As a result of the merger, each share of common stock of Coterra outstanding immediately prior to the effective time of the merger (other than certain excluded shares) was converted into the right to receive 0.70 shares of common stock of Devon and cash in lieu of fractional shares, as applicable (the “merger consideration”). Additionally, as a result of the merger, each outstanding equity award of Coterra was treated in accordance with the terms of the Merger Agreement.

The following unaudited pro forma combined financial statements (the “Pro Forma Financial Statements”) have been prepared from the respective historical consolidated financial statements of Devon and Coterra and give effect to the closing of the merger. The unaudited pro forma combined balance sheet (the “Pro Forma Balance Sheet”) is presented as if the merger had been completed on March 31, 2026. The unaudited pro forma combined statement of operations (the “Pro Forma Statements of Operations”) for the three months ended March 31, 2026 and the year ended December 31, 2025 is presented as if the merger had been completed on January 1, 2025.

The Pro Forma Financial Statements have been developed from and should be read in conjunction with:

•

the unaudited consolidated financial statements of Devon and related notes thereto included in its Quarterly Report on Form 10-Q for the three months ended March 31, 2026;

•

the audited consolidated financial statements of Devon and related notes thereto included in its Annual Report on Form 10-K for the year ended December 31, 2025;

•

the unaudited condensed consolidated financial statements of Coterra and related notes thereto included in its Quarterly Report on Form 10-Q for the three months ended March 31, 2026; and

•

the audited consolidated financial statements of Coterra and related notes thereto included in its Annual Report on Form 10-K for the year ended December 31, 2025.

The Pro Forma Financial Statements have been prepared to reflect adjustments to Devon’s historical consolidated financial information that are (i) directly attributable to the merger, (ii) factually supportable and (iii) with respect to the Pro Forma Statement of Operations, expected to have a continuing impact on Devon’s results. Accordingly, the Pro Forma Financial Statements reflect the following:

•

the merger, using the acquisition method of accounting for business combinations, with Devon as the accounting acquirer and each share of Coterra common stock converted into 0.70 shares of Devon common stock;

•

the assumption of liabilities for expenses directly attributable to the merger; and

•

the conforming of Coterra’s historical amounts to Devon’s financial statement presentation and accounting policies, including reclassifications of certain line items for consistent presentation.

Under the acquisition method of accounting for business combinations, the merger consideration is allocated to the assets acquired and liabilities assumed by Devon in connection with the merger based on their estimated fair values. As of the date of this report, Devon has not completed the detailed valuation study necessary to arrive at the required final estimates of the fair value of the acquired Coterra assets and assumed liabilities. As soon as practicable, Devon will identify the Coterra assets acquired and liabilities assumed and make final determinations of their fair values using relevant information available at that time. As a result of the foregoing, the pro forma adjustments with respect to the merger are preliminary and are subject to change as additional information becomes available and as additional analysis is performed. The fair value of assets acquired and liabilities assumed upon completion of the final valuations may differ materially from the preliminary estimates presented in the Pro Forma Financial Statements.

Although helpful in illustrating the financial characteristics of the combined company under one set of assumptions, the Pro Forma Financial Statements do not reflect the benefits of expected cost savings (or associated costs to achieve such savings), opportunities to earn additional revenue or other factors that may result after the merger and, accordingly, do not attempt to predict or suggest future results. Specifically, the Pro Forma Statements of Operations exclude projected synergies expected to be achieved as a result of the merger, as well as any associated costs that may be required to achieve such projected synergies. Further, the Pro Forma Financial Statements do not reflect the effect of any regulatory actions that may impact the results of the combined company following the merger.

DEVON ENERGY CORPORATION AND SUBSIDIARIES

UNAUDITED PRO FORMA COMBINED BALANCE SHEET

MARCH 31, 2026

(IN MILLIONS)


	Historical								Transaction Accounting Adjustments
	Devon			Coterra		Total			Reclass^(a)			Coterra Merger			Pro Forma Devon
ASSETS
Current assets:
Cash, cash equivalents and restricted cash	$	1,815		$	—	$	1,815		$	490		$	—		$	2,305
Cash and cash equivalents		—			485		485			(485	)		—			—
Restricted cash		—			5		5			(5	)		—			—
Accounts receivable		2,250			1,259		3,509			(269	)		—			3,240
Income tax receivable		—			57		57			(57	)		—			—
Inventory		319			38		357			—			—			357
Other current assets		378			124		502			99			—			601

Total current assets		4,762			1,968		6,730			(227	)		—			6,503
Oil and gas property and equipment, net		23,912			—		23,912			21,140			12,550	^(b)		57,602
Other property and equipment, net		1,686			—		1,686			1,039			—			2,725
Properties and equipment, net		—			22,179		22,179			(22,179	)		—			—

Total property and equipment, net		25,598			22,179		47,777			—			12,550			60,327
Goodwill		753			—		753			—			—			753
Right-of-use assets		312			—		312			166			—			478
Investments		715			—		715			99			—			814
Other long-term assets		403			480		883			(307	)		—			576

Total assets	$	32,543		$	24,627	$	57,170		$	(269	)	$	12,550		$	69,451

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	975		$	1,316	$	2,291		$	(744	)	$	—		$	1,547
Revenues and royalties payable		1,678			—		1,678			475			—			2,153
Accrued liabilities		—			367		367			(367	)		—			—
Interest payable		—			25		25			(25	)		—			—
Short-term debt		999			250		1,249			—			—			1,249
Other current liabilities		1,082			—		1,082			392			—			1,474

Total current liabilities		4,734			1,958		6,692			(269	)		—			6,423

Long-term debt		7,387			3,263		10,650			—			(19	)^(b)		10,631
Lease liabilities		206			—		206			115			—			321
Asset retirement obligations		986			337		1,323			—			(212	)^(b)		1,111
Other long-term liabilities		940			233		1,173			(115	)		—			1,058
Deferred income taxes		2,862			3,722		6,584			—			2,940	^(b)		9,524
Redeemable preferred stock		—			8		8			—			—			8
Stockholders’ equity:
Common stock		62			76		138			—			53	^(c)		115
													76	^(d)
Additional paid-in capital		5,316			7,823		13,139			—			24,894	^(c)		30,210
													(7,823	)^(d)
Retained earnings		10,171			7,193		17,364			—			(7,193	)^(d)		10,171
Accumulated other comprehensive income (loss)		(121	)		14		(107	)		—			(14	)^(d)		(121	)

Total equity		15,428			15,106		30,534			—			9,841			40,375

Total liabilities and equity	$	32,543		$	24,627	$	57,170		$	(269	)	$	12,550		$	69,451

DEVON ENERGY CORPORATION AND SUBSIDIARIES

UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS

FOR THE THREE MONTHS ENDED MARCH 31, 2026

(IN MILLIONS)


	Historical									Transaction Accounting Adjustments
	Devon			Coterra			Total			Reclass^(a)			Coterra Merger			Pro Forma Devon
Oil, gas and NGL sales	$	2,977		$	—		$	2,977		$	2,348		$	—		$	5,325
Oil		—			1,043			1,043			(1,043	)		—			—
Natural gas		—			1,110			1,110			(1,110	)		—			—
NGL		—			195			195			(195	)		—			—
Oil, gas and NGL derivatives		(701	)		—			(701	)		(434	)		—			(1,135	)
Loss on derivative instruments		—			(434	)		(434	)		434			—			—
Other		—			33			33			(33	)		—			—
Marketing and midstream revenues		1,531			—			1,531			23			—			1,554

Total revenues		3,807			1,947			5,754			(10	)		—			5,744

Production expenses		894			—			894			627			—			1,521
Exploration expenses		25			5			30			11			—			41
Marketing and midstream expenses		1,547			—			1,547			12			—			1,559
Depreciation, depletion and amortization		904			555			1,459			(14	)		240	^(f)		1,685
Asset dispositions		1			—			1			3			—			4
General and administrative expenses		125			79			204			10			—			214
Financing costs, net		109			—			109			43			—			152
Restructuring and transaction costs		19			—			19			—						19
Direct operations		—			291			291			(291	)		—			—
Gathering, processing and transportation		—			267			267			(267	)		—			—
Taxes other than income		—			101			101			(101	)		—			—
Loss on sale of assets		—			3			3			(3	)		—			—
Interest expense		—			46			46			(46	)		—			—
Interest income		—			(3	)		(3	)		3			—			—
Other, net		17			—			17			3			—			20

Total expenses		3,641			1,344			4,985			(10	)		240			5,215

Earnings before income taxes		166			603			769			—			(240	)		529
Income tax expense (benefit)		46			137			183			—			(55	)^(g)		128

Net earnings	$	120		$	466		$	586		$	—		$	(185	)	$	401

Net earnings per share:
Basic net earnings per share	$	0.19														$	0.35
Diluted net earnings per share	$	0.19														$	0.35
Weighted average shares outstanding:
Basic		616												532	^(h)		1,148
Diluted		618												532	^(h)		1,150

DEVON ENERGY CORPORATION AND SUBSIDIARIES

UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2025

(IN MILLIONS)


	Historical									Transaction Accounting Adjustments						Pro Forma Devon
	Devon			Coterra			Total			Reclass^(a)			Coterra Merger			Pro Forma Devon
Oil, gas and NGL sales	$	11,223		$	—		$	11,223		$	7,176		$	—		$	18,399
Oil		—			3,699			3,699			(3,699	)		—			—
Natural gas		—			2,633			2,633			(2,633	)		—			—
NGL		—			844			844			(844	)		—			—
Oil, gas and NGL derivatives		402			—			402			351			—			753
Gain on derivative instruments		—			351			351			(351	)		—			—
Other		—			118			118			(118	)		—			—
Marketing and midstream revenues		5,563			—			5,563			70			—			5,633

Total revenues		17,188			7,645			24,833			(48	)		—			24,785

Production expenses		3,567			—			3,567			2,369			—			5,936
Exploration expenses		43			27			70			62			—			132
Marketing and midstream expenses		5,635			—			5,635			28			—			5,663
Depreciation, depletion and amortization		3,595			2,370			5,965			(75	)		717	^(f)		6,607
Asset impairments		254			—			254			—			—			254
Asset dispositions		(343	)		—			(343	)		(5	)		—			(348	)
General and administrative expenses		492			323			815			49			—			864
Financing costs, net		455			—			455			191			—			646
Restructuring and transaction costs		—			—			—			—			50	^(e)		50
Direct operations		—			1,023			1,023			(1,023	)		—			—
Gathering, processing and transportation		—			1,089			1,089			(1,089	)		—			—
Taxes other than income		—			366			366			(366	)		—			—
Gain on sale of assets		—			(5	)		(5	)		5			—			—
Interest expense		—			205			205			(205	)		—			—
Interest income		—			(14	)		(14	)		14			—			—
Other income		—			(2	)		(2	)		2			—			—
Other, net		24			—			24			(5	)		—			19

Total expenses		13,722			5,382			19,104			(48	)		767			19,823

Earnings before income taxes		3,466			2,263			5,729			—			(767	)		4,962
Income tax expense (benefit)		785			546			1,331			—			(176	)^(g)		1,155

Net earnings		2,681			1,717			4,398			—			(591	)		3,807
Net earnings attributable to noncontrolling interests		39			—			39			—			—			39

Net earnings attributable to Devon	$	2,642		$	1,717		$	4,359		$	—		$	(591	)	$	3,768

Net earnings per share:
Basic net earnings per share	$	4.18														$	3.24
Diluted net earnings per share	$	4.17														$	3.23
Weighted average shares outstanding:
Basic		632												532	^(h)		1,164
Diluted		633												532	^(h)		1,165

NOTES TO UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS

Basis of Presentation

The Devon and Coterra historical financial information have been derived from each respective company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2026 and Annual Report on Form 10-K for the year ended December 31, 2025. Certain of Coterra’s historical amounts have been reclassified to conform to Devon’s financial statement presentation. These Pro Forma Financial Statements should be read in conjunction with the historical financial statements and related notes thereto of Devon and Coterra.

The Pro Forma Balance Sheet is presented as if the merger had been completed on March 31, 2026. The Pro Forma Statements of Operations for the three months ended March 31, 2026 and for the year ended December 31, 2025 are presented as if the merger had been completed on January 1, 2025.

The Pro Forma Financial Statements reflect pro forma adjustments that are described in the accompanying notes and are based on currently available information. Preliminary adjustments have been made that are necessary to present fairly the Pro Forma Financial Statements and are subject to change as additional information becomes available and as additional analysis is performed. The Pro Forma Financial Statements do not purport to represent what the combined company’s financial position or results of operations would have been if the merger had actually occurred on the dates indicated, nor are they indicative of Devon’s future financial position or results of operations. Actual results may differ materially from the assumptions and estimates reflected in these Pro Forma Financial Statements.

Merger Consideration and Purchase Price Allocation

The transaction is accounted for using the acquisition method of accounting for business combinations, with Devon as the accounting acquirer. The allocation of the preliminary estimated purchase price with respect to the merger is based upon Devon’s estimates of, and assumptions related to, the fair value of assets to be acquired and liabilities to be assumed as of March 31, 2026 using currently available information. Because the unaudited pro forma combined financial statements have been prepared based on these preliminary estimates, the final purchase price allocation and the resulting effect on financial position and results of operations of the combined company may be materially different from the pro forma amounts included herein. Devon expects to finalize the purchase price allocation as soon as practicable.

The preliminary purchase price allocation is subject to change due to several factors, including, but not limited to:

•

changes in the estimated fair value of Coterra’s identifiable assets acquired and liabilities assumed as of the closing date of the merger, which could result from changes in oil and natural gas commodity prices, reserve estimates, discount rates and other factors;

•

the tax bases of Coterra’s assets and liabilities as of the closing date of the merger; and

•

the factors described in the section entitled “Risk Factors” beginning on page 25 of Devon’s and Coterra’s joint proxy statement/prospectus related to the merger.

The preliminary value of the merger consideration and its allocation to the net assets acquired is as follows (in millions, except exchange ratio data):


	Preliminary Purchase Price Allocation
Consideration:
Coterra common stock outstanding		759.4
Exchange Ratio		0.70

Devon common stock issued		531.6
Devon closing price on May 6, 2026	$	46.60

Total common equity consideration	$	24,772
Share-based replacement rewards		175

Total consideration	$	24,947

Assets acquired:
Cash, cash equivalents and restricted cash	$	490
Accounts receivable		990
Inventory		38
Other current assets		223
Oil and gas property and equipment, net		33,690
Other property and equipment, net		1,039
Right-of-use assets		166
Investments		99
Other long-term assets		173

Total assets acquired	$	36,908
Liabilities assumed:
Accounts payable		572
Revenues and royalties payable		475
Short-term debt		250
Other current liabilities		392
Long-term debt		3,244
Lease liabilities		115
Asset retirement obligations		125
Other long-term liabilities		118
Deferred income taxes		6,662
Redeemable preferred stock		8

Total liabilities assumed		11,961

Net assets acquired	$	24,947

Pro Forma Adjustments

The following adjustments have been made to the accompanying Pro Forma Financial Statements to give effect to the merger:

(a)

The following reclassifications conform Coterra’s historical financial information to Devon’s financial statement presentation:

Pro Forma Balance Sheet as of March 31, 2026

•

Current assets: Reclassification of $485 million cash and cash equivalents and $5 million restricted cash to cash, cash equivalents and restricted cash. Reclassification of $57 million of income tax receivable to other current assets. Reclassification of $269 million oil and gas revenue accrual from a gross presentation within accounts payable to a net presentation within accounts receivable.

•

Property and equipment: Reclassification of $22.2 billion of properties and equipment, net, to oil and gas property and equipment, net, for $21.1 billion and other property and equipment, net, for $1.0 billion.

•

Other long-term assets: Reclassification of $307 million from other long-term assets to right-of-use assets for $166 million, investments for $99 million and other current assets for $42 million.

•

Current liabilities: Reclassification of $475 million from accounts payable to revenues and royalties payable, and $269 million of oil and gas revenue accrual from a gross presentation within accounts payable to a net presentation within accounts receivable. Reclassification of $367 million of accrued liabilities and $25 million of interest payable to other current liabilities.

•

Other long-term liabilities: Reclassification of $115 million from other long-term liabilities to lease liabilities.

Pro Forma Statement of Operations for the Three Months Ended March 31, 2026

•

Revenues: Reclassification of $1.0 billion, $1.1 billion and $195 million of Coterra’s disaggregated oil, natural gas and NGL sales, respectively, to aggregated oil, gas and NGL sales. Reclassification of $434 million loss on derivative instruments to oil, gas and NGL derivatives. Reclassification of $33 million of other revenues to marketing and midstream revenues and production expenses for $23 million and $10 million, respectively.

•

Expenses: Reclassification of $281 million from direct operations expenses, $255 million from gathering, processing and transportation expenses and $101 million from taxes other than income to production expenses. Reclassification of $11 million from depreciation, depletion and amortization to exploration expenses. Reclassification of $12 million from gathering, processing and transportation expenses to marketing and midstream expenses. Reclassification of $46 million from interest expense and $3 million from interest income to financing costs, net. Reclassification of $3 million from loss on sale of assets to asset dispositions. Reclassification of $10 million from direct operations expenses to general and administrative expenses. Reclassification of $3 million from asset retirement obligation accretion expense included in depreciation, depletion and amortization to other, net.

Pro Forma Statement of Operations for the Year Ended December 31, 2025

•

Revenues: Reclassification of $3.7 billion, $2.6 billion and $0.8 billion of Coterra’s disaggregated oil, natural gas and NGL sales, respectively, to aggregated oil, gas and NGL sales. Reclassification of $351 million gain on derivative instruments to oil, gas and NGL derivatives. Reclassification of $118 million from other revenues to marketing and midstream revenues, production expenses and other for $70 million, $32 million and $16 million, respectively.

•

Expenses: Reclassification of $1.0 billion from direct operations expenses, $1.1 billion of gathering, processing and transportation expenses and $366 million of taxes other than income to production expenses. Reclassification of $62 million from depreciation, depletion and amortization to exploration expenses. Reclassification of $28 million of gathering, processing and transportation expenses to marketing and midstream expenses. Reclassification of $205 million from interest expense and $14 million from interest income to financing costs, net. Reclassification of $5 million gain on sale of assets to asset dispositions. Reclassification of $49 million from direct operations expenses to general and administrative expenses. Reclassification of $13 million from asset retirement obligation accretion expense included in depreciation, depletion and amortization and $2 million from other income to other, net.

(b)

These adjustments reflect the estimated fair value of Devon common stock of $24.8 billion allocated to the estimated fair values of the assets acquired and liabilities assumed as follows:

•

Total property and equipment, net: $12.6 billion increase in Coterra’s net book value of oil and gas properties.

•

Long-term debt: $19 million decrease in Coterra’s book value.

•

Asset retirement obligations: $212 million decrease in Coterra’s book value.

•

Deferred income taxes: $2.9 billion increase in deferred tax liabilities resulting from the fair value adjustments, calculated using the estimated blended statutory tax rate of 23%.

(c)

These adjustments reflect the increase in Devon common stock and additional paid-in capital resulting from the issuance of Devon common stock to Coterra stockholders to effect the transaction.

(d)

These adjustments reflect the elimination of Coterra’s historical equity balances.

(e)

This adjustment reflects the estimated transaction costs of $50 million ($39 million, net of tax) related to the merger, including financial advisory, banking, legal and accounting fees that are not capitalized as part of the transaction. These amounts and their corresponding tax effect have been reflected in the Pro Forma Statements of Operations.

(f)

These adjustments reflect the increase to depreciation, depletion and amortization expense resulting from the change in the basis of property and equipment.

(g)

Reflects the income tax benefit of $55 million for the three months ended March 31, 2026 and $176 million for the year ended December 31, 2025 on the pro forma adjustments, primarily incremental depreciation, depletion, and amortization, calculated using the estimated blended statutory tax rate of 23%.

(h)

These adjustments reflect Devon common stock issued to Coterra stockholders.