"U.S. shale producer Devon Energy will acquire Coterra Energy for nearly $26 billion in a combination that creates a domestic oil and gas juggernaut trailing only household names Exxon Mobil, Chevron, and ConocoPhillips in sheer production volumes, the companies announced Feb. 2. After a couple of years of rapid consolidation in the energy sector, dealmaking slowed down dramatically last year as oil prices fell when OPEC ramped up its output and the Trump administration implemented a series of tariffs worldwide."
"The all-stock merger of near equals creates the largest oil and gas producer in the western lobe of the booming Permian Basin-the Delaware Basin in west Texas and southeastern New Mexico. It is the biggest oil and gas merger in two years since Diamondback Energy bought Endeavor Energy Resources to make a goliath in the Permian's eastern lobe, the Midland Basin."
"The combined Devon would carry an enterprise value of $58 billion, including debt. The deal does not include a premium, valuing Coterra at about $21.5 billion, not counting roughly $5 billion in assumed debt. The Delaware Basin would account for just more than half of the expanded Devon's 1.6 million barrels of oil equivalent produced daily, but the company also would have sizable footprints in Oklahoma, Pennsylvania, North Dakota, Wyoming, and south Texas' Eagle Ford Shale."
Devon Energy will acquire Coterra Energy in an all-stock deal valued near $26 billion that combines major Permian assets. The combined company would carry an enterprise value near $58 billion including debt and values Coterra at about $21.5 billion excluding roughly $5 billion of assumed debt. The merger creates the largest operator position in the Delaware Basin, which would supply just over half of the combined firm's roughly 1.6 million barrels of oil equivalent per day. The company would also retain sizable footprints in Oklahoma, Pennsylvania, North Dakota, Wyoming, and the Eagle Ford. Stabilizing crude prices have revived merger activity after a slowdown.
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