Adds details on quarterly results in paragraphs 2-4

Feb 17 (Reuters) - Devon Energy DVN.N on Tuesday beat Wall Street estimates for fourth-quarter profit on higher oil and gas production amid volatile crude prices, weeks after agreeing to a $58 billion merger with Coterra Energy CTRA.N to create a Permian Basin powerhouse.

Global crude oil prices have been pressured by growing worries of a glut and the increasing prospect of more Venezuelan barrels returning to the market. WTI crude CLc1 fell about 20% in 2025, and declined 8% in the October-December quarter.

Against this backdrop, Devon and Coterra disclosed their merger to keep a tight leash on costs, strengthen the balance sheet and gain scale.

Fourth-quarter production rose to 851,000 barrels of oil equivalent per day (boepd), from 848,000 boepd a year earlier.

Including cash settlements, average realized prices were $34.52 per barrel of oil equivalent, compared with $40.32 per barrel of oil equivalent a year earlier.

The company posted an adjusted profit of 82 cents per share for the three months ended December 31, compared with analysts' average estimates of 81 cents, according to data compiled by LSEG.