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.

Anchored in the Delaware Basin

At the heart of the transaction lies the Delaware Basin, widely considered one of North America’s most prolific shale regions. The companies described their combined footprint there as a “premier position” in the basin’s economic core.

On a pro forma basis, third-quarter 2025 production would exceed 1.6 million barrels of oil equivalent per day. That includes more than 550,000 barrels of oil per day and approximately 4.3 billion cubic feet of natural gas per day.

More than half of the merged company’s output and cash flow is expected to originate from the Delaware Basin. Together, the companies will control nearly 750,000 net acres in the region, backed by more than a decade of what they call “top-tier inventory.”

Like two river systems converging into a single current, the combined operations are designed to channel scale into sustained production strength.

$1 Billion in Synergies Targeted

The companies project $1 billion in annual pre-tax synergies by the end of 2027. Those gains are expected to stem from operational efficiencies, leaner corporate structures and disciplined capital allocation.

Devon President and CEO Clay Gaspar described the deal as transformative.

“This transformative merger combines two companies with proud histories and cultures of operational excellence, creating a premier shale operator,” Gaspar said in the announcement.

Coterra Chairman, CEO and President Tom Jorden emphasized the strength of the asset base and balance sheet the merger would create.

The combined company, he said, will offer “best-in-class rock quality and inventory depth,” supported by a diversified commodity mix, competitive cost structure and conservative financial profile.

Leadership and Governance

Upon closing, Gaspar will serve as president and chief executive officer of the combined entity. Jorden will transition to the role of non-executive chair.

The board will consist of 11 directors — six appointed from Devon and five from Coterra — reflecting the negotiated balance of influence.

Timeline and Approvals

The Devon and Coterra $58B Merger is expected to close in the second quarter of 2026, subject to regulatory clearances, customary closing conditions and approval by shareholders of both companies.

Evercore is serving as financial adviser to Devon. Goldman Sachs and J.P. Morgan Securities are advising Coterra.

Devon’s legal team from Skadden includes partners Steve Gill, Dohyun Kim, Mingda Zhao, Elizabeth Gonzalez-Sussman, Emery Choi, Erica Schohn, Joseph Penko, Michael Hong, Steven Messina, Trevor Allen and David Wales.

Coterra’s counsel at Gibson Dunn includes partners Tull Florey, Hillary Holmes, Andrew Kaplan, Rahul Vashi, Shalla Prichard, Krista Hanvey and Joshua Lipton.

As consolidation accelerates across the shale patch, the merger signals another chapter in the industry’s evolution — where scale is strategy, acreage is currency and the race for operational supremacy continues beneath the surface of America’s energy heartland.