Devon Energy and Coterra Energy Announce $58 Billion Merger

On February 2, 2026, Devon Energy and Coterra Energy announced a definitive agreement to merge in an all-stock transaction valued at approximately $58 billion. This merger is set to create one of the largest shale producers in the United States, with a significant position in the Delaware Basin, a key area for oil and gas production. Under the terms of the deal, Coterra shareholders will receive 0.70 shares of Devon common stock for each share they own, resulting in Devon shareholders owning about 54% of the combined entity.

Grafa logoDevon and Coterra to Create Shale Giant in $58-Billion Merger DealDevon Energy will merge with Houston-based Coterra EnergyDevon And Coterra Plan A $58 Billion All-Stock MergerCoterra Energy Signs Agreement and Plan of Merger With Devon EnergyDevon drops 3%, Coterra slides 4% on merger fearsDevon Energy To Merge With Coterra In $58 Bln All-stock Shale DealDevon Energy Signs Agreement and Plan of Merger With Coterra EnergyU.S. shale producers Devon and Coterra agree to $58-billion merger

The merger comes amid a challenging environment for shale producers, characterized by a global oil glut and declining crude prices, which have pressured profit margins. Devon and Coterra aim to enhance their competitive edge by consolidating their assets and operational capabilities. The combined company is projected to achieve $1 billion in annual pre-tax synergies by 2027 through improved capital efficiency, optimized operations, and reduced corporate costs. Devon CEO Clay Gaspar emphasized that the merger will unlock operational advantages that smaller operators cannot access, enhancing margins and shareholder returns.

Devon Energy to move headquarters to Houston in merger with Coterra EnergyDevon, Coterra will merge to create U.S. shale giant in $58 billion dealDevon, Coterra agree to $58-billion all-stock merger, creating major U.S. shale operatorDevon Energy will merge with Houston-based Coterra EnergyDevon drops 3%, Coterra slides 4% on merger fearsDevon and Coterra to merge, creating major Delaware Basin gas and shale producerU.S. shale producers Devon and Coterra agree to $58-billion mergerWhat we know about the Devon-Coterra Energy mergerDevon and Coterra to Create Shale Giant in $58-Billion Merger Deal

The newly formed Devon Energy will have a robust production capacity, with expectations to exceed 1.6 million barrels of oil equivalent per day, including over 550,000 barrels of oil and 4.3 billion cubic feet of natural gas daily. The Delaware Basin will be a focal point, contributing more than half of the combined company's production and cash flow. The merger will consolidate nearly 750,000 net acres in this economically vital region, which is known for its low breakeven costs and extensive drilling inventory.

Devon and Coterra to merge, creating major Delaware Basin gas and shale producer

Following the merger, Clay Gaspar will continue as the President and CEO of the combined company, while Coterra's CEO Tom Jorden will transition to the role of non-executive chairman. The board will consist of 11 members, with six from Devon and five from Coterra. The headquarters will be relocated to Houston, Texas, although the company will maintain a significant operational presence in Oklahoma City, where Devon has a long-standing history.

CONFIRMED: Devon, Coterra Merge to Create U.S. Shale Giant in $58 Billion DealDevon Energy to move headquarters to Houston in merger with Coterra EnergyWhat we know about the Devon-Coterra Energy mergerDevon Energy will merge with Houston-based Coterra EnergyDevon and Coterra $58B Merger to Forge Shale PowerhouseU.S. shale producers Devon and Coterra agree to $58-billion mergerDevon to move HQ to Houston; will maintain 'significant' OKC presence

Despite the strategic advantages presented by the merger, initial market reactions were negative, with Devon shares falling approximately 3% and Coterra shares dropping about 4.2% in premarket trading. Analysts have expressed concerns regarding the execution risks and integration challenges associated with such a large-scale merger. The deal is expected to close in the second quarter of 2026, pending regulatory approvals and shareholder votes.

What we know about the Devon-Coterra Energy merger

The merger between Devon Energy and Coterra Energy represents a significant consolidation in the U.S. shale sector, aimed at enhancing operational scale and efficiency in a challenging market environment. As the combined entity prepares for its future, it will focus on leveraging its extensive asset base and technological capabilities to drive shareholder value and navigate the complexities of the energy landscape.

Devon Energy will merge with Houston-based Coterra Energy