In a significant shift for the energy sector, Expand Energy Corporation (NASDAQ: EXE), North America’s largest natural gas producer, has announced plans to relocate its corporate headquarters from Oklahoma City, Oklahoma, to Houston, Texas, by mid-2026.
This move comes just seven days after Devon Energy revealed its own headquarters relocation to Houston as part of a major merger, highlighting a growing trend of energy companies consolidating in the Texas energy hub.
Background on Expand Energy and the Announcement
Expand Energy, formerly known as Chesapeake Energy, was formed in 2024 through the merger of Chesapeake and Southwestern Energy in a $7.4 billion all-stock deal.
The company has since grown into a powerhouse focused on natural gas exploration and production, with operations emphasizing responsible development of abundant supplies to meet domestic and global demand.
Headquartered initially in Oklahoma City, Expand employs around 1,723 people and generates approximately $4 billion in annual revenue.
The February 9, 2026, announcement detailed that the relocation will primarily affect the executive leadership team, while Oklahoma City will remain a key operational hub with its 500 local employees unaffected.
Concurrently, the company revealed a leadership transition: President and CEO Domenic (Nick) J. Dell’Osso, Jr., has stepped down, with Chairman Michael Wichterich appointed as interim CEO. Wichterich, who has prior experience as interim CEO and a track record in the Permian Basin, will oversee the move while a permanent replacement is sought.
Dell’Osso will serve as an external advisor during the transition.
Expand reaffirmed its 2025 financial outlook in the release, including synergies from prior mergers and expectations for fourth-quarter earnings, which will be reported on February 17, 2026.
Acreage and Asset Overview
Expand Energy’s portfolio is centered on high-quality, large-scale assets in two primary basins: the Appalachian (including Marcellus and Utica shales) and Haynesville. The company holds approximately 1.83 million net acres across these regions, making it a dominant player in natural gas production.
This includes significant positions in Ohio, West Virginia, Pennsylvania, and northwestern Louisiana, with a mix of natural gas, oil, and natural gas liquids.
Recent expansions bolster this footprint. In the second half of 2025, Expand acquired about 82,500 net acres for $235 million, split between 75,000 acres in the Western Haynesville (for $178 million) and 7,500 acres in the Marcellus (for $57 million).
The Western Haynesville addition is particularly strategic, offering lower production costs and positioning the company for anticipated surges in regional gas demand from LNG exports and industrial growth.
These acquisitions add hundreds of premium drilling locations, enhancing Expand’s ability to deliver lower-carbon energy efficiently.
Historically, the company’s assets trace back to Chesapeake’s divestitures and acquisitions, such as the 2014 sale of Marcellus and Utica holdings to Southwestern for $4.975 billion, which included 413,000 net acres.
Today, Expand’s operations emphasize operational efficiency, with a focus on the Haynesville’s proximity to LNG infrastructure and the Appalachia’s exposure to oil and liquids.
Following Devon’s Lead: A Trend in Energy Relocations
Expand’s decision follows closely on the heels of Devon Energy’s February 2, 2026, announcement of a $58 billion all-stock merger with Coterra Energy, which will also relocate Devon’s headquarters to Houston while maintaining a significant presence in Oklahoma City.
The merged Devon-Coterra entity will create one of the world’s leading shale producers, with pro forma production exceeding 1.6 million barrels of oil equivalent per day (Boe/d) and an enterprise value of $58 billion.
The deal includes a combined 750,000 net acres in the core Delaware Basin (part of the Permian), plus nearly 2.3 million net acres across other plays like the Anadarko, Eagle Ford, Marcellus, Bakken, and Niobrara.
Expected to close in Q2 2026, the merger aims for $1 billion in annual pre-tax synergies by 2027, driven by scale, longer laterals, and cost efficiencies.
Both moves underscore Houston’s allure as the “energy capital of the world,” offering proximity to global markets, talent pools, and infrastructure. For Devon, the relocation is tied directly to the merger, as Coterra is already Houston-based.
Is Regulatory Burden a Factor?
Company statements emphasize strategic benefits: for Expand, the move accelerates access to global natural gas markets and strengthens partnerships, with Houston providing “unmatched proximity and connectivity to the global energy ecosystem.”
Similarly, Devon’s merger focuses on operational synergies and basin dominance, without referencing regulations.
However, Oklahoma’s oil and gas industry has long grappled with regulatory challenges, particularly at the federal level under prior administrations. Advocacy groups like the Petroleum Alliance of Oklahoma highlight burdens from EPA rules on methane emissions and compliance costs that disproportionately affect small producers.
Recent federal actions, such as opposition to Biden-era regulations adding costs to existing production, underscore these concerns. At the state level, Oklahoma’s tax structure relies heavily on volatile gross production taxes (averaging 7.24% of total revenue over the past decade), ranking the state’s tax base as the ninth most volatile in the U.S. Policies shifting tax burdens to the industry or imposing unnecessary regulations have been criticized by trade groups.
While neither company explicitly cites Oklahoma’s regulatory environment as a reason for departing, the broader context suggests it could play a role. Texas offers a more favorable landscape with lower taxes, reduced bureaucratic hurdles, and incentives that have drawn companies like Chevron from California.
Industry insiders note that compliance with evolving environmental rules, such as those targeting methane, can strain resources, especially for gas-focused operators like Expand.
That said, the primary drivers appear to be market access and consolidation, not a direct flight from Oklahoma-specific burdens.
Implications for the Energy Landscape
These relocations signal a maturing shale industry, where scale and strategic positioning trump traditional hubs like Oklahoma City. For Expand, the move positions it to leverage Houston’s ecosystem for LNG exports and global demand, aligning with its 1.83 million acres of prime gas assets. Devon-Coterra’s merger creates a diversified giant with oil-heavy output in the Permian, potentially reshaping competition.
As energy transitions accelerate, companies like Expand and Devon are betting on Houston to drive efficiency and growth. Oklahoma, meanwhile, retains operational footprints but loses corporate prestige—and potentially economic influence. Stakeholders will watch closely as these shifts unfold in 2026.
Sources: investors.devonenergy.com, investors.expandenergy.com
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