# Toms Capital Urges Devon Energy to Explore Strategic Sale

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/23312
Published: 2026-09-23T13:53:35.000Z
Updated: 2026-09-23T13:53:35.000Z

Toms Capital Management is pressing Devon Energy to review strategic alternatives, including a potential sale, after becoming one of the oil and gas producer’s five largest shareholders.

The activist investor, which manages just over $4 billion in assets, outlined the proposal in a letter sent earlier this month. Toms had previously encouraged Devon to simplify its portfolio and is now arguing that a buyer could acquire the entire company and later sell individual assets.

Toms said Devon’s May merger with Coterra Energy created an overly complex collection of properties across the Delaware, Marcellus, Eagle Ford and Powder River basins. The Delaware Basin spans West Texas and southeastern New Mexico and is a major part of Devon’s portfolio.

The investor argues that the expanded structure has contributed to a valuation discount of at least one multiple point compared with peers. Devon’s stock trades at roughly 4.5 times estimated 2027 earnings before interest, taxes, depreciation and amortization.

Toms’ campaign comes after Kimmeridge, another Devon investor, urged the company to streamline its assets and explain its strategy following the Coterra merger. Toms has also brought litigator Alex Spiro into the campaign. Whether Devon pursues a sale or other strategic changes was not specified.