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Devon, Coterra merge to create U.S. shale giant in $58 billion deal
Posted on 2/2/26 at 10:50 am
Posted on 2/2/26 at 10:50 am
quote:
Devon Energy and Coterra Energy on Monday announced a $58 billion all-stock merger to become a large-cap producer with a top position in the Permian Basin as the shale sector consolidates to cut costs and boost scale.
The largest deal in the sector since Diamondback’s $26 billion acquisition of Endeavor Energy Resources in 2024 comes as a global oil glut and the increasing likelihood of more Venezuelan barrels returning to the market are pressuring U.S. crude prices, hurting shale producers’ margins.
Even though M&As in the sector cooled in 2025, producers in the shale patch continue to pursue size advantages, from lowering per-barrel costs to extending drilling runways in maturing basins like the Permian and Anadarko.
quote:
Devon and Coterra operate in several major U.S. shale formations, with overlapping positions in the Delaware portion of the Permian Basin in Texas and New Mexico, as well as in Oklahoma’s Anadarko Basin.
The combined pro-forma 2025 production for the third quarter would exceed 1.6 million barrels of oil equivalent per day, including more than 550,000 barrels of oil and 4.3 billion cubic feet of gas.
Over half of production and cash flow would come from the Delaware Basin, where the combined company will hold roughly 750,000 net acres in the core of the play.
The merger is expected to close in the second quarter of 2026, after which the combined company will retain the name Devon, be based in Houston and maintain a major presence in Oklahoma City.
Devon CEO Clay Gaspar will lead the company, while Coterra CEO Tom Jorden will become non-executive chairman.
LINK
With the annual North American Petroleum Expo in Houston only 2 1/2 weeks away, I'm sure this will add to conversation at the event, especially with Devon moving its corporate headquarters from OKC to Houston.
This post was edited on 2/2/26 at 10:53 am
6
Posted on 2/2/26 at 11:44 am to ragincajun03
I initially said I'd be shocked if they got rid of the DVN tower, but now I'm not so sure. The alternative... Eagleford and Bakken engineers would come to Houston and Permian would all go to Coterra building in Midland. OKC would eventually be minimized to Oklahoma assets...they may even just keep the Tulsa building and get out of OKC altogether. This was told to me by a DVN Bakken friend.
Posted on 2/2/26 at 11:52 am to tiger11
quote:
Permian would all go to Coterra building in Midland
I know there were quite a few Devon folks officing out of Artesia, and I think Carlsbad as well. Don't recall seeing an office in Midland itself.
I'm guessing Permian folks who are at a Manager or Director level may be given the option to Houston rather than Midland.
Speaking of Eagleford, Exxon looks to be wanting out of that area. Curious who's going to pick up those assets, or if it'll be multiple buyers rather than just one.
Posted on 2/2/26 at 11:52 am to ragincajun03
Good Lord. Not bad
quote:
The combined pro-forma 2025 production for the third quarter would exceed 1.6 million barrels of oil equivalent per day, including more than 550,000 barrels of oil and 4.3 billion cubic feet of gas.
Posted on 2/2/26 at 11:59 am to ragincajun03
Is this move good for the American energy industry?
Posted on 2/2/26 at 12:06 pm to Oilfieldbiology
I don't know if it's necessarily good or bad at this point. Could be Devon and Coterra leadership preferred to merge together rather than be the next one gobbled by a major.
Which in that case...personally....I'd say that's a positive. Rumors for probably a good two years now that Shell wants back in the Permian. Maybe this makes them a bit too big for Shell to want to take in one bite?
Which in that case...personally....I'd say that's a positive. Rumors for probably a good two years now that Shell wants back in the Permian. Maybe this makes them a bit too big for Shell to want to take in one bite?
Posted on 2/2/26 at 12:09 pm to ragincajun03
quote:
Which in that case...personally....I'd say that's a positive. Rumors for probably a good two years now that Shell wants back in the Permian. Maybe this makes them a bit too big for Shell to want to take in one bite?
but how will this affect crawfish prices?
Posted on 2/2/26 at 12:12 pm to ragincajun03
quote:
with Devon moving its corporate headquarters from OKC to Houston.
Up in the Woodlands or what?
Posted on 2/2/26 at 12:14 pm to 777Tiger
Hoping it means Mo's in Mowatta will be open by Mardi Gras. February 17th gonna be cutting it close, especially with these recent hard freezes.
Posted on 2/2/26 at 12:21 pm to ragincajun03
on a serious note I just went and bought some ctra, hope it spikes when the deal is finalized
Posted on 2/2/26 at 12:24 pm to idlewatcher
quote:
Up in the Woodlands or what?
Coterra has an office in Memorial City. Maybe they've already locked up additional floors there knowing for a while this was in the works?
I don't believe Devon has had an office in Houston ever since they moved out of the one downtown.
Posted on 2/2/26 at 12:27 pm to ragincajun03
Wonder if they will be by Murphy or even in the Frost building.
Posted on 2/2/26 at 12:39 pm to ragincajun03
quote:
I know there were quite a few Devon folks officing out of Artesia, and I think Carlsbad as well. Don't recall seeing an office in Midland itself.
Correct, but Coterra has a large building in Midland that would likely be utilized. It's a nice, newer building as well. Most permian operations that I'm aware of for Coterra are officed there now.
Posted on 2/2/26 at 12:42 pm to ragincajun03
quote:I’d pay 0.0000001% of that to never have to set foot in the Permian basin again.
in $58 billion deal
Posted on 2/2/26 at 12:47 pm to ragincajun03
More consolidation, less jobs. Everything rolling up into the big companies where AI will further consolidate.
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