Activist hedge fund Toms Capital Management is urging Devon Energy to explore strategic alternatives, including a sale of the entire company, after becoming one of its five largest shareholders. Toms sent Devon a letter earlier this month arguing that the company’s May 2025 merger with Coterra Energy made its asset base overly complex and contributed to a valuation discount of more than one multiple point versus comparable companies. The fund, which manages roughly $4 billion, estimates Devon trades at about 4.5 times 2027 estimated EBITDA. Toms had previously pressed Devon in private meetings to simplify its holdings but is now calling for a full sale, arguing that an acquirer would be better positioned to manage subsequent asset disposals. Alex Spiro is supporting the campaign, while Kimmeridge has separately urged Devon to rationalize its portfolio and establish a clearer strategy. Devon shares rose about 3% on Wednesday, taking their 2026 gain to more than 31%, although volatile crude prices could complicate a potential transaction.