Toms Capital urges Devon Energy to consider strategic options, including a sale

Activist hedge fund Toms Capital Management has asked Devon Energy to review strategic alternatives, including a possible sale of the company, according to a letter seen by CNBC. The New Yorkbased firm said it is now among Devon's largest shareholders and argued that the company's portfolio has become too complex after its merger with Coterra Energy last year. Toms said that complexity may be contributing to a valuation discount versus peers. Toms also said a sale of Devon could shift execution risk to a buyer that might later separate assets. The campaign is being joined by lawyer Alex Spiro. Devon has not publicly responded, and it is unclear whether the fund's push will lead to a transaction.