Devon Energy and Coterra Energy announced a $58 billion all-stock merger on Monday, creating one of the largest producers in the U.S. shale sector. Under the agreement, Coterra shareholders will receive 0.70 Devon shares for each share they hold.
Devon investors will own about 54 percent of the combined company. The deal values the transaction’s equity at roughly $21.4 billion.
NEWS: Today we announced a definitive agreement to combine with Coterra Energy in a transformative all-stock merger creating one of the world's largest shale producers. #DVNCTRA
— Devon Energy (@DevonEnergy) February 2, 2026
Learn more here: https://t.co/YrZHbEPsQr
SEC Legend: https://t.co/0nErCl0HJE pic.twitter.com/2BbYLFMzmu
The merger brings together complementary assets in the Delaware Basin, a key oil-producing region, as companies seek scale and cost savings amid weaker crude prices.
Devon said overlapping operations will increase free cash flow and support dividends and share buybacks.
Devon Energy is set to acquire Coterra Energy in an all-stock deal valued at $21.4 billion.$CTRA: +2.82% pic.twitter.com/QYGnDZHMUr
— Yahoo Finance (@YahooFinance) February 2, 2026
The combined company will retain the Devon name and be headquartered in Houston, with a major office in Oklahoma City.
Devon CEO Clay Gaspar will lead the firm, while Coterra CEO Tom Jorden will serve as non-executive chairman. The deal is expected to close in the second quarter of 2026.
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Terry Jones
TIPP Staff
