Devon Energy Corporation (NYSE:DVN) is trending Wednesday after CNBC reported that activist hedge fund Toms Capital Management sent a letter urging the company to explore strategic alternatives, including a sale.
- Devon shares are trending higher. What’s pushing DVN stock higher?
Hedge Fund Calls on Devon to Sell Itself
According to CNBC, Toms Capital sent the letter earlier this month, disclosing it is now one of Devon’s top five shareholders after being outside the ten biggest holders as of the end of June. The hedge fund, which manages just over $4 billion in assets, argues that Devon’s May 2025 merger with Coterra Energy — which expanded its footprint in the Delaware Basin and brought together assets spanning the Marcellus, Eagle Ford and Powder River basins — has added undue complexity to the company. Toms claims that complexity contributes to a valuation discount of at least one multiple point versus peers, notable given the stock trades at roughly 4.5 times 2027 estimated EBITDA.
Toms is urging Devon to sell itself outright, arguing that a strategic buyer could later divest individual assets, shifting the execution risk of such sales away from current Devon shareholders. Litigator Alex Spiro, known for his advisory relationship with Elon Musk, has joined the campaign alongside Toms. Devon has also faced pressure from another investor, Kimmeridge, which has publicly pushed the company to streamline its portfolio and clarify its strategy following the Coterra merger.
Toms and Spiro declined to comment beyond the letter, and Devon did not immediately return a request for comment.
Devon Shares Edge Higher
DVN Price Action: At the time of publication, Devon shares are trading 2.83% higher at $48.26, according to data from Benzinga Pro. This brings their 2026 gain to more than 31%.
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