Devon and Expand relocations fuel Oklahoma tax debate

Moves to Houston reignite discussion over Oklahoma income tax policy, business migration, and impact on energy headquarters decisions.

Published on Feb. 12, 2026

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The recent announcements by Devon Energy and Expand Energy to relocate their headquarters from Oklahoma City to Houston, Texas have reignited the debate over Oklahoma's income tax policy and its impact on business decisions. The moves have raised questions about whether high taxes played a role in the companies' decisions, with some lawmakers arguing that eliminating the state's personal income tax could help retain and attract businesses.

Why it matters

The departure of major energy companies like Devon and Expand from Oklahoma raises concerns about the state's ability to retain and attract businesses, particularly in the crucial energy sector. The debate over tax policy and its impact on business decisions is likely to continue, with lawmakers divided on the best approach to address the issue.

The details

When Devon Energy announced its relocation to Houston, the company cited the ability to capture annual pre-tax synergies of $1 billion as a key factor. Expand Energy's new CEO also highlighted the company's desire to capitalize on Houston's role as a gateway to the global natural gas market. The issue of tax policy has been a central focus, with some lawmakers arguing that Oklahoma's income tax puts the state at a competitive disadvantage compared to Texas, which has no state income tax. Senate Democratic Leader Julia Kirt expressed concern over the loss of corporate entities from Oklahoma, while Republican Senator Dusty Deevers argued that the income tax must be repealed to stop 'wage-theft' and retain businesses.

  • In February 2026, Devon Energy announced the relocation of its headquarters from Oklahoma City to Houston, Texas.
  • A week later, Expand Energy followed with a similar announcement to move its headquarters to Houston.

The players

Devon Energy

A major energy company that recently announced the relocation of its headquarters from Oklahoma City to Houston, Texas.

Expand Energy

An energy company that also announced the relocation of its headquarters from Oklahoma City to Houston, Texas.

Julia Kirt

The Senate Democratic Leader in Oklahoma, who expressed concern over the loss of corporate entities from the state.

Dusty Deevers

A Republican state senator in Oklahoma who argued that the state's income tax must be repealed to stop 'wage-theft' and retain businesses.

Oklahoma Council for Public Affairs

A policy organization that addressed the issue of oil and gas firms departing the state and whether high taxes played a role in the decisions.

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What they’re saying

“Anytime we lose a corporate entity from Oklahoma, that's a concern. And I hope that we're going to assess why they chose Houston for their headquarters.”

— Julia Kirt, Senate Democratic Leader (okenergytoday.com)

“Oklahomans shouldn't have to cross a state line to get a 4.5% raise. The income tax must be repealed.”

— Dusty Deevers, State Senator (X)

What’s next

The debate over Oklahoma's tax policy and its impact on business decisions is likely to continue, with lawmakers divided on the best approach to address the issue. The state legislature may consider proposals to further reduce or eliminate the personal income tax in an effort to retain and attract businesses.

The takeaway

The relocation of major energy companies like Devon and Expand from Oklahoma to Texas highlights the importance of tax policy in business decision-making. The debate over income tax policy in Oklahoma is likely to intensify, with lawmakers on both sides of the aisle offering competing proposals to address the issue and maintain the state's competitiveness in attracting and retaining businesses.