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June 9 (Reuters) - Devon Energy DVN.N on Tuesday forecast its 2026 production to average 1.38 million barrels of oil equivalent per day, after the completion of its merger with Coterra Energy.

The $58 billion merger, completed in May, created one of the largest independent oil and gas producers in the U.S. Its presence in half a dozen regions is led by the Delaware portion of the Permian Basin in Texas and New Mexico.

The company also forecast full-year capital spending of about $4.9 billion, with more than 60% of it allocated to the Permian Basin, as it focuses activity around its core assets.

Devon said it would provide timely updates as it looks to concentrate the portfolio around its Permian position to improve shareholder returns.

"Optimizing our portfolio remains a top priority, and a complete review of our strategic and financial criteria is well underway," CEO Clay Gaspar said.

The shale producer said it aims to return up to 70% of free cash flow to shareholders through a combination of a quarterly fixed dividend of $0.32 per share and its previously announced $8 billion share repurchase program.

Devon said it expected to repay $1.25 billion of debt this year.

It added that it is accelerating merger-related synergies, targeting to capture $600 million in 2027 and $1 billion in annual pre-tax synergies on a run-rate basis by the end of that year.

Last month, Devon acquired 16,300 net undeveloped acres in the core of the Delaware Basin in New Mexico for about $2.6 billion.