Devon Energy and Coterra Energy have agreed to combine in an all-stock transaction valued at roughly $58 billion, creating a larger U.S. shale operator with a significant footprint in the Permian Basin. Under the terms announced in early February 2026, Coterra shareholders would receive 0.70 shares of Devon stock for each Coterra share, leaving Devon shareholders with about 54% of the combined company and Coterra shareholders with about 46%.
The merged business is expected to produce more than 1.6 million barrels of oil equivalent per day and will keep the Devon name, with Devon CEO Clay Gaspar slated to lead the company and Coterra CEO Tom Jorden expected to serve as non-executive chair. The companies said the deal is designed to improve scale and efficiency across overlapping assets, with a target of $1 billion in annual pre-tax savings by 2027 and a $5 billion plan for shareholder returns through dividends and buybacks. The transaction is expected to close in Q2 2026, subject to regulatory and shareholder approvals, a timeline investors will watch closely alongside regional development plans and how mineral rights work in Texas.
Source: Yahoo Finance
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