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.
Management has identified $1 billion in annual pre-tax synergies, which they expect to fully realize by the end of 2027 through optimized capital programs and streamlined corporate costs.
Clay Gaspar, Devon’s current President and CEO, will lead the combined company in the same role.
Tom Jorden, Coterra’s Chairman, CEO, and President, will transition to non-Executive Chairman of the Board.
The board will consist of 11 members—six from Devon and five from Coterra.
To underscore the deal's value to investors, the new Devon Energy plans to declare a quarterly dividend of $0.315 per share and implement a fresh share repurchase authorization exceeding $5 billion following the close.