In a deal set to redraw the U.S. energy map, Devon Energy and Coterra Energy announced Monday they have agreed to combine in an all-stock transaction valued at approximately $58 billion, including debt — a move that will create a dominant large-cap shale operator with deep roots in Texas and Oklahoma.
The Devon and Coterra $58B Merger brings together two established producers in a high-stakes bid to scale up in the fiercely competitive shale sector, where size, efficiency and premium acreage can spell the difference between resilience and retreat.
Skadden Arps Slate Meagher & Flom LLP is advising Devon, while Gibson Dunn & Crutcher LLP is representing Coterra in the transaction.
Deal Terms and Ownership Split
Under the agreement, Coterra shareholders will receive 0.70 share of Devon common stock for each Coterra share they own, according to a joint statement from the companies.
Following the merger, existing Devon shareholders will hold about 54% of the combined company, with Coterra investors owning roughly 46%. The unified enterprise will retain the Devon name.
The new company will be headquartered in Houston, while maintaining a significant operational presence in Oklahoma City — reflecting the legacy footprints of both firms.
