Oil and gas producer Devon Energy has agreed to acquire Coterra Energy in an all-stock deal that could create one of the largest shale producers in the U.S.
The combined company will retain the Devon Energy name and will be headquartered in Houston. The merger is expected to unlock substantial value by leveraging each company’s core strengths and will generate US$1 billion in annual pre-tax synergies by the end of 2027.
Under the terms of the agreement, Coterra shareholders will receive 0.70 shares of Devon stock for each share of Coterra stock they hold.
Upon completion, Devon shareholders will own approximately 54 per cent of the merged company, and Coterra shareholders will own approximately 46 per cent on a fully diluted basis.
Based on Devon’s closing price on January 30, the transaction implies a combined enterprise value of approximately US$58 billion.
The transaction is expected to close in the second quarter of 2026.
“This transformative merger combines two companies with proud histories and cultures of operational excellence, creating a premier shale operator,” said Clay Gaspar, Devon’s President and CEO.
“We’ve now built a diverse asset base of high-quality, long duration inventory to drive resilient value creation and returns for shareholders through cycles.”
The merged company will be one of the world’s leading shale producers, with pro forma third quarter 2025 production exceeding 1.6 million barrels of oil equivalent (Boe) per day, including over 550,000 barrels of oil per day and 4.3 billion cubic feet of gas per day.
Tom Jorden, Chairman, CEO, and President of Coterra said: “This combination enhances the Delaware and brings together two premier organisations with complementary cultures rooted in operational excellence, disciplined capital allocation, and data‑driven decision-making focused on creating per share value.
“The combined company will offer best-in-class rock quality and inventory depth, supported by a balanced commodity mix, leading cost structure, and a conservative balance sheet. “
The deal also strengthens Devon’s position in the Delaware basin, with pro forma third quarter 2025 production of 863,000 Boe per day distributed across nearly 750,000 net acres in the core of the play.
Following the merger, the board of directors will consist of 11 members, six directors from Devon and five from Coterra.
Clay Gaspar will serve as President and CEO, and Tom Jorden will assume the role of Non-Executive Chairman of the board.
