Why are Devon, Expand Energy both moving to Houston? OKC company moves, explained.

After both Expand Energy and Devon Energy recently announced relocations to Houston, Texas, one question arises: What makes the Texas city so attractive to Oklahoma City businesses?

The two moves stem from different circumstances — Devon through its merger with Houston-based Coterra and Expand through leadership shakeups — but together they’ve generated concern in Oklahoma City’s energy sector.

But Devon and Expand are not the first businesses to move to Houston from OKC. Here a look at what the companies have said about the shift.

More: Harold Hamm says Continental Resources will stay in OKC as rivals move to Houston

Devon Energy announces move to Houston in merger

Devon Energy announced Feb. 2 that it plans move its headquarters from Oklahoma City and merge with Houston-based Coterra Energy.

Devon Energy spokesperson Michelle Hindermarch said in a call with investors that the headquarters relocation was a part of the merger.

“This wasn’t an easy decision, but it was required for the success of the transaction and is the right one for a company of our scale to compete most effectively,” Hindmarch said.

As for Houston itself, Hindmarch noted that the city “provides greater access to commercial counterparties, many of our peers, and other industry resources.” 

Hindermarch did not provide any information about how the move to Houston would impact employment numbers in Oklahoma City, only that the company will continue to have a significant presence.

As of Tuesday, Feb. 10, it is known that CEO Clay Gaspar and other executive positions will make the move to Houston.

Expand makes move to Houston

On Feb. 9, Expand Energy, previously known as Chesapeake Energy, announced it would follow Devon Energy in moving its headquarters to Houston. 

The company said the 500-employee workforce behind Expand Energy will remain in Oklahoma City, and the relocation will primarily involve the executive team to strengthen Expand Energy’s relationships with key industry and commercial partners.

In an email to employees, Chairman of the Board Michael Wichterich said Expand Energy’s move to Houston will be completed by mid-2026 but promised the Oklahoma City workforce will be unaffected by the relocation. Wichterich said he was set to visit the Oklahoma City campus on Feb. 9 to meet with employees. 

Regarding the decision to move, Wichterich said the move will “allow us to capitalize on Houston’s leading role as a gateway to the global natural gas market.

“Houston offers unmatched proximity and connectivity to the global energy ecosystem. Establishing our headquarters in the Houston area is a natural evolution of our growing marketing and commercial focus and places leadership at the heart of this ecosystem,” Wichterich said.

History of Oklahoma energy companies moving to Houston

Several homegrown energy companies have moved to Houston over the years. 

Conoco got its start in 1913 when it was spun off as an independent company from Standard Oil. The company then moved its headquarters to Ponca City when it merged with Marland Oil in 1929. The company moved its headquarters to Houston in 1950. 

Phillips 66 was started in 1927 by oilman Frank Phillips; it was acquired by Houston-based Conoco in 2002. The company retains a presence in Bartlesville with its 440-acre Phillips 66 Research Center. Another oil and gas company, Citgo, was headquartered in Tulsa starting in 1968 and then relocated to Houston in 2004. 

Petroleum Alliance of Oklahoma President Brook A. Simmons predicted the state will continue to see small oil and gas operators grow into major employers. 

“Oklahoma has long been fertile ground for independent oil and natural gas companies with big ideas and a willingness to take risks,” Simmons said. “Many of today’s industry giants got their start here as homegrown operations. Expand Energy (formerly Chesapeake Energy) began with two men and 20 wells outside Lindsay. Continental Resources was founded by an Enid wildcatter. Devon Energy itself started with just five employees and a handful of wells.” 

Contributing: Steve Lackmeyer, The Oklahoman