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U.S. shale producers Devon and Coterra to merge in a $58 billion deal
The merger creates a leading shale producer with over 1.6 million barrels of oil equivalent daily output and $1 billion in annual pre-tax cost savings.
- Devon Energy and Coterra Energy said on Monday they will merge in an all-stock deal valued at $58 billion, creating a large-cap producer with a dominant position in the Delaware Basin.
- Cost pressures and inventory priorities prompted Devon and Coterra to combine complementary acreage, aiming to cut costs, boost free cash flow, and achieve $1 billion in annual pre-tax synergies.
- Operationally, the combined company would exceed pro-forma third quarter 2025 production of 1.6 million Boe/day, operate across Permian, Anadarko, Eagle Ford, Marcellus, and Rockies, and hold the largest Delaware inventory with a breakeven below $40 per barrel.
- The boards approved the deal expected to close in the second quarter of 2026, with Devon shares down 3%, Coterra shares down 2.7%, and Clay Gaspar, Devon CEO, leading the combined company.
- The deal ranks as the largest U.S. shale tie-up since Diamondback’s about $26 billion acquisition in 2024, with Devon Energy headquartered in Houston and Coterra shareholders receiving 0.70 share exchange ratio.
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24 Articles
24 Articles
US shale producers Devon and Coterra to merge in a $58 billion deal
U.S. shale producers Devon Energy and Coterra Energy said on Monday they will merge in a $58 billion all-stock deal, creating a large-cap producer with a dominant position in the Delaware Basin as the industry consolidates to cut costs and boost scale.
·United Kingdom
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Total News Sources24
Leaning Left2Leaning Right3Center11Last UpdatedBias Distribution69% Center
Bias Distribution
- 69% of the sources are Center
69% Center
12%
C 69%
R 19%
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