Devon Energy (NYSE:DVN) and Coterra Energy (NYSE:CTRA) announced a definitive agreement on Monday to combine in an all-stock merger, creating a premier independent shale producer with a dominant footprint in the Delaware Basin.
The transaction, valued at approximately $58 billion including debt, marks the largest consolidation in the U.S. energy sector since 2024 and signals a renewed drive for scale as producers face maturing assets and volatile crude prices.
The combined entity, which will retain the Devon Energy name, will be headquartered in Houston while maintaining a significant operational hub in Oklahoma City.
Under the terms of the deal, Coterra shareholders will receive 0.70 shares of Devon common stock for each share held.
Upon completion, expected in the second quarter of 2026, Devon shareholders will own approximately 54% of the company, with Coterra shareholders holding 46%.
The merger creates a large-cap operator with pro forma production exceeding 1.6 million barrels of oil equivalent (Boe) per day, including more than 550,000 barrels of oil per day.
The crown jewel of the portfolio is a combined 750,000 net acres in the Delaware Basin, which is expected to account for more than 50% of the company's total production and cash flow.