Devon Energy (DVN) said Tuesday it expects the combined company following its merger with Coterra Energy to produce an average of 1.38 million barrels of oil equivalent per day in 2026, including 500,000 barrels per day of oil.

Full-year 2026 capital spending is projected at approximately $4.9 billion, with more than 60% directed to the Permian Basin, the company said.

Devon Energy said it is targeting the return of up to 70% of free cash flow to shareholders via dividends and share repurchases.

Devon Energy also expects to retire $1.25 billion of debt in 2026, according to a statement.