Kimmeridge released an open letter to the future Board of Devon Energy ahead of the closing of its merger with Coterra , expected on May 4, 2026. "The merger of Devon and Coterra represents a compelling strategic combination that brings together high-quality assets, operational scale and the potential for durable free cash flow," said Mark Viviano, Managing Partner at Kimmeridge. "The combined company has a clear opportunity to close an unwarranted valuation gap, provided it acts decisively from day one." The letter warns that newly formed boards often face a period of inertia following a major merger. In a volatile commodity environment, that delay comes with a cost, particularly to shareholders. Kimmeridge encourages the Board to initiate an accelerated program of non-core asset divestitures to position Devon as a best-in-class operator. Executive Compensation Reset Kimmeridge advocates for a completely refreshed approach to compensation design based on the principles laid out in its 2020 white paper, "Bringing Alignment and Accountability to the E&P Sector" . The firm advocates for 100% performance-based long-term incentives, deemphasizing relative TSR in favor of long-term financial measures and ensuring meaningful downside accountability alongside upside participation. Under Devon's existing plan, only 60% of long-term incentives are performance based. As noted in Devon's 2025 proxy, the 2022 performance units paid out at 75% of target despite the company only achieving the eighth highest TSR out of a twelve-company and index peer group. Investors have no patience for bottom-tier performance, and neither should the Board. About Kimmeridge Founded in 2012 by Ben Dell, Dr. Neil McMahon and Henry Makansi, Kimmeridge is an alternative asset manager focused on the energy sector. Since inception, the platform has outperformed the S&P 500 and relevant indices 2x on an annualized basis, under the direction of Managing Partner, Mark Viviano. Media Contact: [email protected] Cautionary Statement Regarding Forward-Looking Statements: This press release contains forward-looking statements. Specific forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and include, without limitation, words such as "may," "will," "expects," "believes," "anticipates," "plans," "estimates," "projects," "potential," "targets," "forecasts," "seeks," "could," "should" or the negative of such terms or other variations on such terms or comparable terminology.