Devon Energy’s Q3 2025 earnings call delivered plenty of headlines—production outperformance, AI-driven drilling improvements, and major free-cash-flow gains—but one of the more interesting strategic signals came from a short exchange about Oklahoma and the Anadarko Basin. It was brief, but it revealed a lot about where the Mid-Continent fits into the company’s long-term plan—and why outside buyers are suddenly circling the region again.
While Devon’s high-return inventory and optimization results continue to center on the Delaware Basin, leadership made it clear that Oklahoma remains an advantaged gas position—and a basin they continue to evaluate as they reshape their five-basin portfolio heading into 2026.
Oklahoma’s Structural Gas Advantage
When asked about the wave of industry interest in the Anadarko, Devon’s CEO Clay Gaspar didn’t hesitate to highlight what makes Oklahoma strategically attractive in today’s market:
“It’s gas oriented… positioned well… not backed up behind Waha. So there’s some structural advantages of the Mid-Continent, the Anadarko Basin that we benefit from today.”
— Clay Gaspar, CEO Devon Energy Corporation (DVN) …
This is the line that matters.
Natural gas in the Permian—particularly the Delaware—has been tied up, discounted, or outright stranded at various points due to Waha congestion. Compared to that, Oklahoma offers operators:
- Reliable takeaway capacity
- Less exposure to Permian basis blowouts
- More stable realized pricing
- Stronger alignment with growing Gulf Coast demand
As U.S. LNG capacity rises through 2026, gassy positions with clean market access become far more valuable—especially as Henry Hub volatility increases.
A Basin Under Strategic Review (But Still Valuable)
Gaspar also confirmed that Devon is actively—and continually—evaluating Oklahoma’s place in its long-term strategy:
“We consider everything all the time… Our Board is very thoughtful about how to build long-term shareholder value and maintain a strong 10-year inventory runway.”
— Gaspar Devon Energy Corporation (DVN) …
This tells us three things:
- Oklahoma is not untouchable
Devon has been optimizing its portfolio aggressively—selling non-core assets, dissolving joint ventures, acquiring select high-return locations. Anadarko could be reassessed depending on market conditions. - But it still matters today
The basin’s gas profile, market positioning, and infrastructure stack make it a strategically useful counterweight to the Permian. - Any sale would require a premium
With structural advantages and a rising tide of M&A interest in the Mid-Continent, Devon won’t part with the position cheaply.
Why Buyers Are Suddenly Interested in the Anadarko
Several factors are reviving interest in Oklahoma’s Anadarko Basin:
1. Gas is back in focus
The U.S. is heading into a multi-year gas cycle driven by:
- LNG export expansions
- Data-center-driven power demand
- Industrial reshoring
- Higher heating load expectations
A gas-weighted basin with clean takeaway looks much better than the last time it traded.
2. Lower volatility vs. Permian gas
The market remembers $-5/MMBtu Waha. Oklahoma didn’t suffer that fate.
3. Inventory discipline across shale
Operators are prioritizing high-quality, moderate-decline gas inventory over pure growth.
4. Infrastructure already built
The Mid-Continent has decades of midstream development—no need for multi-billion-dollar new pipelines.
Combine those factors, and it’s not surprising to see private equity and upstream consolidators kicking tires in the region.
So What Does This Mean for 2026?
From the call, a few forward-looking takeaways are clear:
1. Devon’s core focus remains the Delaware
That’s where the AI-driven drilling efficiency gains, multi-zone co-development, and productivity momentum are strongest.
2. But Oklahoma still provides stability
- Low basis risk
- Predictable uplift
- Infrastructure certainty
- Steady gas revenue
It’s safe, cash-flowing, and operationally straightforward.
3. Don’t rule out a sale—but don’t expect one soon
Devon’s language signals optional value, not urgency.
If the right buyer offers a premium, Devon will listen.
If not, Oklahoma remains a strategically solid gas asset in a tightening market.
Two-Sentence Summary
Devon Energy emphasized that Oklahoma’s Anadarko Basin has clear structural advantages, particularly its gas positioning and freedom from Waha-style takeaway bottlenecks, making it increasingly attractive in a strengthening gas market. While interest in the basin is rising, Devon said it is regularly assessing its long-term portfolio fit, keeping the door open to future M&A without signaling any immediate plans to exit.
