Shale producer Devon Energy approves $8 billion share buyback plan

May 7 (Reuters) - ‌U.S. oil ​and ​gas producer Devon Energy said on Thursday its board had ‌approved a $8 billion share repurchase program, ⁠a week after activist investor Kimmeridge called ‌for higher shareholder returns.

Last ‌week, Kimmeridge, a well-known activist investor in the energy sector, urged Devon's ​incoming board to swiftly pursue asset sales, improve capital allocation ⁠and revamp executive pay to boost shareholder returns once ​its $58 billion merger with Coterra Energy closes.

• The all-stock merger with ​Coterra closed earlier on ‌Thursday.

• Devon said the share repurchase program represents nearly 15% ⁠of its combined market capitalization.

• CEO Clay Gaspar said the company would ⁠be active and opportunistic in its buyback program.

• ​The authorization expires on June 30, 2029, Devon Energy said.

• The shale producer also approved ‌a quarterly dividend of $0.320 per share, representing a 33% increase ‌over the prior quarter.

• Devon ⁠Energy's shares were ‌up 1.4% in ​extended trading.

(Reporting by Vallari Srivastava in Bengaluru; Editing by Sahal ‌Muhammed)

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