Energy industry group warns Oklahoma policies are pushing headquarters out as Houston consolidates corporate leadership

Letter cites tax and regulatory decisions as key factors behind recent corporate relocations

A statewide oil and natural gas trade group is urging Oklahoma legislative leaders to revisit tax and property assessment policies after two prominent energy companies announced plans to shift their corporate headquarters to the Houston area. The group argues that a series of policy decisions over the past decade has weakened Oklahoma’s competitiveness for energy-sector headquarters, even as the state remains a major center of production and services.

The warning follows announcements involving Devon Energy and Expand Energy. Devon has agreed to an all-stock merger with Coterra Energy valued at about $58 billion, with the combined company expected to be headquartered in Houston and the transaction projected to close in the third quarter of 2026. Expand Energy, previously known as Chesapeake Energy, has said it will relocate its headquarters from Oklahoma City to Spring, Texas, by mid-2026; company statements around the move have indicated the shift is focused on leadership and commercial functions while maintaining an operational presence in Oklahoma City.

What the group says Oklahoma should change

In its letter to legislative leaders, the trade group describes the headquarters moves as a “wake-up call” and links them to policy choices it says increased costs and uncertainty for the industry. The letter emphasizes three areas lawmakers could address during the current session:

• Tax relief and broader tax competitiveness for the oil and gas sector.
• Changes to how ad valorem taxes are applied and administered, with the group arguing the system can be “gamed” and creates uneven burdens.
• A development strategy that prioritizes natural gas as a growth engine alongside—rather than behind—other energy technologies.

“If you want less of something — fewer leading Oklahoma businesses, less oil and natural gas production, and ultimately less revenue for public policy priorities — raise taxes on that thing,” the letter states.

Policy context: gross production tax changes and state revenue

Oklahoma lawmakers have adjusted oil and gas taxation in recent years, including legislation in 2018 that increased gross production tax rates for certain wells. State financial reporting after those changes showed higher gross production collections compared with the prior year during periods of strong receipts, though collections also move with commodity prices and drilling activity.

State leaders weigh business climate and economic diversification

Gov. Kevin Stitt has publicly framed Expand Energy’s relocation as a reminder to maintain a business-friendly environment, pointing to proposals such as specialized business courts and tax policy changes. Meanwhile, House leadership voices have emphasized that the state’s long-term strategy should not depend on any single company or sector, highlighting diversification efforts in areas such as aerospace, biosciences and advanced manufacturing.

The competing emphases—protecting a cornerstone industry while accelerating diversification—are likely to shape legislative debates as Oklahoma responds to the symbolic and practical impact of corporate headquarters moving to Houston.