Toms Capital Calls for Sale of Devon Energy in Activist Letter
Toms Capital Management, a $4 billion hedge fund now among the top five shareholders of Devon Energy (DVN), has urged the oil and gas company to explore strategic alternatives including a full sale. The activist investor argues that Devon's complex asset base is dragging down its stock valuation, which it estimates trades at more than one multiple point below comparable companies—around 4.5 times estimated 2027 EBITDA. The call for change follows private meetings where Toms had previously pushed for simplification of holdings and comes after Devon's May merger with Coterra Energy expanded its footprint across several U.S. basins, including the Delaware Basin in the Permian region. The campaign is supported by attorney Alex Spiro, known for his high-profile legal work. Toms' push joins similar efforts from Kimmeridge, another energy-focused firm that has also called on Devon to clarify a coherent strategy post-merger. While potential buyers may be interested in parts of Devon's portfolio, volatile crude prices could complicate any deal negotiations.
Topics: activist investor M&A speculation shareholder pressure strategic alternatives