Oklahoma City-based Devon Energy and Houston-based Coterra Energy said Monday they are merging in a $58 billion all-stock transaction to create a shale operator that reportedly ranks second only to ConocoPhillips in lower 48 production. Devon said headquarters for the combined company will be in Houston (with “a significant presence in Oklahoma City”) with Devon’s Clay Gaspar as president and CEO and Coterra’s Tom Jorden as chairman of the board.
The combined company will be one of the largest producers in the Permian’s Delaware Basin with third quarter 2025 production of 863,000 boed distributed across nearly 750,000 net acres in the core of the play. This asset will account for more than 50 percent of the combined company’s total production. It is underpinned by more than 10 years of top-tier inventory, “including the largest amount of sub-$40 inventory in the industry.” Closing is expected in second quarter.
There also are assets in Anadarko, Eagle Ford, Marcellus and Rockies.
Gaspar said the transaction creates “a premier shale operator” and is “underpinned by our leading position in the best part of the Delaware Basin.” Jorden added, “The combined company will offer best-in-class rock quality and inventory depth, supported by a balanced commodity mix, leading cost structure and a conservative balance sheet.”
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