Toms Capital Urges Devon Energy to Consider Sale

In a letter to Devon Energy’s board, activist investor Toms Capital urged a formal review of strategic alternatives that could include a sale of the U.S. oil and gas producer. Toms, which manages more than $4 billion in assets, wrote that it has become one of Devon’s five largest shareholders after a substantial build in its position since the end of June.

Toms identified Devon’s May merger with Coterra Energy as the principal reason for the proposal. The transaction enlarged Devon’s holdings in the Delaware Basin and added assets in the Marcellus, Eagle Ford and Powder River basins, creating a broader, more varied portfolio across U.S. producing regions.

The investor argued the expanded portfolio has increased operational complexity and placed a valuation discount on the company. In its letter, Toms estimated the discount at roughly one EBITDA multiple point; Devon shares are trading at about 4.5 times projected 2027 EBITDA by the investor’s estimate.

Toms said it had previously raised portfolio simplification in discussions with company executives and is pressing for a wider strategic review that could result in the company being sold. The letter suggested a strategic buyer could select which assets to retain and which to divest, shifting the execution risk of any portfolio rationalization away from current shareholders.

Toms has enlisted New York litigator Alex Spiro to support the campaign. Spiro and Toms did not provide comments beyond the content of the shareholder letter.

The campaign adds to pressure from other investors. Energy-focused firm Kimmeridge has urged Devon to simplify its asset base and clarify strategy after the Coterra combination. Devon’s board has not announced a formal response to Toms’s letter.

In trading following the disclosure, Devon shares rose about 3% on Wednesday, bringing their gain for 2026 to more than 31%. Toms has run activist campaigns at other large companies, including Kenvue, Kellanova and Denbury.