Coterra Energy Acquired by Devon Energy — Energy M&A

Devon Energy has agreed to acquire Coterra Energy in an all-stock “merger of equals” valued at about $58 billion, combining two major U.S. shale producers focused on the Delaware Basin. The transaction is structured as a stock-for-stock exchange, with Coterra shareholders receiving 0.70 shares of Devon common stock for each Coterra share. The combined company is expected to close in the second quarter of 2026, subject to shareholder approvals and regulatory clearance.

The deal brings together complementary Delaware Basin acreage and operating scale in Texas, creating a larger platform for capital efficiency and resource development in a region where inventory quality and drilling economics are central to competitive positioning. Devon’s and Coterra’s combined footprint is designed to support long-duration development plans, with the strategic intent of improving returns through operational integration and technology-enabled optimization.

Under the proposed terms, Devon’s leadership will be integrated with Coterra’s governance, including Clay Gaspar serving as president and CEO of the combined company and Tom Jorden moving to non-executive chairman. The companies also outlined a projected increase in the base dividend and a capital return program that includes share repurchases, alongside an estimated $1 billion in annual pre-tax synergies targeted for realization over the post-close period.