# Activist hedge fund pushes Devon Energy toward sale

> Toms Capital, now a top-five shareholder, urges the oil giant to explore strategic alternatives after its merger with Coterra Energy.
- Title: Activist hedge fund pushes Devon Energy toward sale · CNBC
- Summary: Toms Capital, now a top-five shareholder, urges the oil giant to explore strategic alternatives after its merger with Coterra Energy. Activist hedge fund…
- Keywords: devon energy, toms capital, activist campaign, oil and gas, mergers and acquisitions, coterra energy, business, finance, Activist, hedge, fund, pushes
- Source: CNBC — https://cnbc.com/2026/09/23/activist-toms-capital-urges-devon-energy-in-letter-to-explore-alternatives-including-a-sale.html
- Author: David Faber
- Published: 2026-09-23T13:42:49+00:00
- Read time: 1 min
- Topics: devon energy, toms capital, activist campaign, oil and gas, mergers and acquisitions, coterra energy, business, finance
## Activist fund targets Devon Energy
Toms Capital Management, which manages just over four billion dollars in assets, sent a letter to Houston-based Devon Energy urging it to review strategic alternatives, including a sale.
## Toms becomes top-five shareholder
Toms Capital says in the letter it is now one of Devon's top five shareholders. The hedge fund was outside the ten biggest Devon holders as of the end of June.
## Coterra merger expanded portfolio
Last May, Devon closed its merger with Coterra Energy, significantly increasing the company's portfolio in the Delaware Basin and bringing together properties including the Marcellus, Eagle Ford and Powder River basins.
## Merger created valuation discount
Toms claims the combination of properties brings undue complexity and contributes to a valuation discount to peers of at least one multiple point, significant given the stock trades at roughly four point five times twenty twenty-seven estimated earnings before interest, taxes, depreciation and amortization.
## Litigator Alex Spiro joins campaign
Toms Capital is joined in its activist campaign by noted litigator Alex Spiro, known for his track record in the courtroom and advisory relationships with Elon Musk and other notable figures.
## Success uncertain amid oil volatility
Whether Toms will succeed in pushing Devon to a sale is far from clear. While major oil companies might have interest in Devon's core position in the Delaware Basin, negotiating a transaction may be difficult given volatility in oil prices.
## Key takeaway

Activist hedge fund Toms Capital is pushing Devon Energy to consider a sale, arguing the company's post-merger complexity has created a valuation discount versus peers.