Devon and Coterra agree to $58-billion US shale merger

HOUSTON AND OKLAHOMA CITY, February 3, 2026 – Devon Energy and Coterra Energy have signed a definitive agreement to merge in an all-stock deal to create a USD 58-billion shale operator, the companies announced on Monday.

The new entity will retain the Devon Energy name and be headquartered in Houston. Based on Q3 2025 results, the company’s pro forma production will exceed 1.6 million boepd, including 550,000 barrels of oil and 121.8 mcm (4.3 bcf) of gas. Future production and cashflow will be anchored in the Delaware Basin, in southwestern New Mexico and western Texas, with pro forma production of 863,000 boepd across approximately 750,000 net acres.

Under the terms of the transaction, Coterra shareholders will receive 0.70 Devon shares for each Coterra share, which will result in Devon shareholders owning approximately 54% of the merged company. The deal has been unanimously approved by both boards and is expected to close in Q2 2026, subject to customary regulatory and shareholder approvals.

Devon president and CEO Clay Gaspar will continue to hold both positions following the merger, while Coterra chairman, CEO and president Tom Jorden will become non-executive chairman. The new entity will have an 11-member board of directors, with six directors from Devon and five from Coterra.

“We have now built a diverse asset base of high-quality, long-duration inventory to drive resilient value creation and returns for shareholders through cycles. This will drive higher free cash flow and greater shareholder returns beyond what either company could achieve alone,” said Gaspar.

Through the merger, Devon and Coterra expect to obtain annual cost synergies of USD 1 billion by the end of 2027 through operational improvements, streamlined costs and an optimised capital programme.

Photo courtesy of Coterra Energy

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