Toms Capital Urges Devon Energy to Explore Full Sale, Citing Valuation Discount

Activist hedge fund Toms Capital Management has urged Devon Energy (NYSE: DVN) to explore strategic alternatives, including a sale of the entire company, according to a letter sent earlier this month, CNBC reported. The $4 billion fund disclosed it has become one of Devon's five largest shareholders. Toms said Devon's combined asset base is overly complex and has weighed on valuation, estimating the stock trades at roughly 4.5 times 2027 estimated EBITDA — a discount of more than one multiple point to peers. The fund argues a buyer would be better positioned to bear the risk of divesting unwanted assets. Devon's portfolio grew more complex after closing its Coterra Energy merger in May 2025, adding exposure to the Delaware, Marcellus, Eagle Ford and Powder River basins. Kimmeridge has separately pressed for change. Attorney Alex Spiro is assisting Toms. Devon shares rose about 3% on Wednesday, extending their 2026 gain to more than 31%. Devon and its advisors declined to comment.