TOMS Capital Presses Devon Energy for Asset Sales or Sale

TOMS Capital Investment Management, led by Benjamin Pass, has taken a sizable stake in Devon Energy and is urging the shale producer to accelerate the sale of non-core assets or consider a full-company sale. Sources say the firm is probing interest from other oil and gas operators. TOMS has taken stakes in McCormick & Co. and Voya Financial, where it is urging changes.

Reuters

In May 2026 Devon merged with Coterra Energy in a $58 billion deal, creating one of the largest U.S. independent E&P companies. The combined firm operates in about six shale basins—including the Permian, Eagle Ford, and Bakken—though the Permian drives most projected production. On June 9 Devon announced a strategic review to focus resources on the Permian.

Reuters

Key participants include TOMS Capital (Benjamin Pass), Devon Energy (CEO Clay Gaspar), activist investor Kimmeridge, and Coterra Energy, the merger partner now part of the Devon-Coterra platform. TOMS ranks among Devon’s top five shareholders.

Reuters

Since the merger, Devon’s shares have risen about 17 % in 2026, lagging the 22 % gain of the S&P Energy index. The company issued new guidance and pledged $8 billion to a share-repurchase program. The buyback returns cash to shareholders while the firm trims its asset base. The asset-review aims to divest lower-valued fields, freeing cash for additional buybacks.

Activist TOMS Pushes Devon Energy To Sell Assets Or Sell Itself

Analysts argue that shedding peripheral assets could narrow the “conglomerate discount,” improve cash-flow per share, and align Devon with pure-play shale peers. A successful divestiture could also attract strategic buyers focused on the Permian.

Activist TOMS Pushes Devon Energy To Sell Assets Or Sell Itself

Devon’s June 9 statement emphasized a plan to streamline operations around the Permian while the strategic review proceeds. TOMS Capital has met with management to press for a faster asset-sale pace and signaled openness to a full acquisition. Kimmeridge has warned that the conglomerate structure creates a valuation gap.

Reuters

Critics note that the post-merger entity may be over-diversified, prompting a market-perceived discount. The activist’s push for a rapid sale faces resistance because integration of the merger is still ongoing.

Activist TOMS Pushes Devon Energy To Sell Assets Or Sell Itself

• “conglomerate discount” — Kimmeridge, investor commentary

Reuters

CEO Clay Gaspar will speak at JPMorgan Chase’s energy conference in New York, where he may address the ongoing review. TOMS Capital is expected to keep outreach to potential bidders, while Devon’s board will evaluate the asset-sale process over the next months. Devon plans to update investors on progress at its next earnings call.

Reuters