June 17 - Activist investor TOMS Capital Investment Management has taken a sizable position in Devon Energy and is pressing the U.S. shale producer to either speed up the sale of non-core assets or consider putting the company up for sale, five people familiar with the matter said.
The shareholder action arrives as Devon moves to define strategy for the combined business after completing its $58 billion deal with Coterra Energy in May. Management has signaled a plan to sharpen the company around its largest footprint in the Permian Basin of Texas and New Mexico while operating in roughly a half-dozen shale basins.
On June 9, Devon said it would optimize its portfolio around its Permian holdings and that a strategic and financial review of its assets was under way. The review follows the merger that created one of the largest independent U.S. oil and gas exploration and production firms, but the tie-up has prompted questions from some corners of the investor community.
Notably, Kimmeridge, an energy-focused investor, has urged Devon to take steps such as selling assets to simplify the business and help avoid what it called a "conglomerate discount" in the stock. In recent weeks, sources said, TOMS Capital - led by Benjamin Pass - has been engaging directly with Devon management to press for a faster timetable on asset sales.
Unlike Kimmeridge, the sources said, TOMS has also indicated it would be open to a full sale of Devon. Two of the sources added that TOMS has been working behind the scenes to stir interest from other oil and gas companies that might bid for Devon.
The people who discussed the matter asked to remain anonymous because the deliberations were confidential. They said the New York-based firm's holding in Devon ranks among its largest current positions, but declined to provide further detail on the stake. The Financial Times previously reported that TOMS is among Devon's top five shareholders.
Devon and TOMS did not immediately provide public comment when contacted regarding the discussions, the sources said.
Market performance so far this year shows Devon's shares are up about 17% in 2026, compared with a roughly 22% gain for the S&P Energy index, the sources noted.
Industry contacts said TOMS faces a challenging path if it seeks to put Devon into play immediately, given the recent Coterra merger and the company's current review of potential asset sales. Potential buyers typically target assets that align closely with their own strategic needs, and with Devon management studying disposals, many suitors would likely seek specific pieces rather than the whole company, these contacts said.
Management activity has included issuing new financial guidance and announcing an $8 billion share repurchase program last month. In addition, Devon has been holding meetings with institutional investors in recent days, two of the sources said.
Devon CEO Clay Gaspar is scheduled to speak at JPMorgan Chase's energy conference in New York on Tuesday, an event that may provide further clarity on the company's strategic direction.
TOMS Capital has been active in pushing for changes at other firms as well. Sources told Reuters last month that TOMS had accumulated a substantial stake in McCormick & Co while that company was pursuing a combination with Unilever's food business. The activist has also been urging Voya Financial to either sell itself or divest its health insurance unit, according to the sources.
Context and next steps
As Devon proceeds with its asset review, TOMS' actions put additional pressure on management to outline concrete plans or respond to shareholder demands. How quickly the company moves on disposals, and whether behind-the-scenes approaches translate into formal offers from other oil and gas companies, remain open questions based on the information available.