Devon Energy and Coterra Energy are combining in a $58 billion all-stock deal that will create one of the world's largest shale producers, with massive presence in the Delaware Basin and projected annual synergies of $1 billion.
How The Rich Retire (The Oxford Club)
Key Points
Devon Energy and Coterra Energy announced a $58 billion all-stock merger creating a dominant U.S. shale producer with core Delaware Basin assets
The combined company will produce over 1.6 million barrels of oil equivalent per day, with the Delaware Basin accounting for more than half of total production
The deal is expected to generate $1 billion in annual pre-tax synergies by year-end 2027 and includes a share buyback program exceeding $5 billion
Coterra shareholders will receive 0.70 shares of Devon stock for each share they own, with the transaction expected to close in Q2 2026
Devon Energy Corporation (DVN) and Coterra Energy Inc. (CTRA) just put together one of the biggest energy deals you'll see this year. The two companies announced Monday they're merging in an all-stock transaction that creates a shale powerhouse with about $58 billion in combined enterprise value and serious dominance in the Delaware Basin.
Here's how the math works: Coterra shareholders get 0.70 shares of Devon stock for every share of Coterra they hold. Based on Devon's closing price on January 30, 2026, that puts the total enterprise value at around $58 billion. Both boards have unanimously approved the deal, which is expected to wrap up in the second quarter of 2026, assuming all the usual regulatory boxes get checked.
When the dust settles, Devon shareholders will own about 54% of the combined entity, with Coterrashareholders holding the remaining 46% on a fully diluted basis. The new company will keep the Devon Energy name and plant its headquarters in Houston, though it'll maintain a significant operational presence in Oklahoma City.
A Month Before The Crash (Ad)
Dear Reader,
Over the past 25 years, I've made it my mission to speak up when something feels off in the markets.
A month before the dot-com bubble burst, I published a warning essentially saying: "This can't last."
In 2008, I rang the alarm on housing calling the fall of Bear Stearns and Lehman Brothers.
I've exposed shady CEOs, market frauds, and financial bubbles before most investors saw the cracks.
Eventually, CNBC gave me a nickname I didn't ask for: "The Prophet."
But what I see happening right now... it's much bigger.
Some are even calling it, "The bubble to burst them all."
And that's why I've stepped forward in a way I never have before... to show you exactly what's coming... and how to stay on the right side of it.
Because if I'm right again – and I've put together all my proof for you – this may be your final chance to prepare.
Regards,
Whitney Tilson
Editor, Stansberry's Investment Advisory
Building a Shale Giant
This isn't just about getting bigger for the sake of size. The merger brings together complementary assets and expertise to create a large-cap exploration and production company with substantial inventory and the kind of free cash flow that can weather market volatility.
The production numbers tell the story. The combined company produced more than 1.6 million barrels of oil equivalent per day in the third quarter of fiscal 2025, including over 550,000 barrels of oil and 4.3 billion cubic feet of natural gas daily. That puts the new Devon among the world's top shale producers.
The real crown jewel here is the Delaware Basin position. The combined company will be one of the largest producers in the play, with pro forma production hitting 863,000 barrels of oil equivalent per day across nearly 750,000 net acres in the core area during Q3 2025. This flagship asset is expected to generate more than half of the company's total production and cash flow.
Management expects the merger to unlock $1 billion in annual pre-tax synergies by the end of 2027. The deal should be accretive to key per-share metrics and supports returning cash to shareholders through a planned quarterly dividend of $0.315 and a share repurchase program exceeding $5 billion, subject to board approval.
What Management Is Saying
Tom Jorden, Chairman, CEO, and President of Coterra, framed the deal as a natural fit: "This combination enhances the Delaware and brings together two premier organizations with complementary cultures rooted in operational excellence, disciplined capital allocation, and data‑driven decision-making focused on creating per share value."
Devon Energy is scheduled to report fourth-quarter 2025 results on February 17, while Coterra plans to release its numbers on February 26, 2026.
Price Action: The market's initial reaction was lukewarm. Devon Energy shares dropped 2.81% to $39.08 in premarket trading Monday, while Coterra Energy fell 3.47% to $27.85.
Recommended Stories
[URGENT] SpaceX Going Public! - Pre IPO Action ACT Now! (From Paradigm Press)