Devon Energy and Coterra Energy have announced a merger in an all-stock transaction to create a leading shale operator, enhancing operational efficiencies and unlocking significant synergies.

Target Information

Devon Energy and Coterra Energy have entered into a definitive agreement to merge in an all-stock transaction, which is set to create a premier large-cap shale operator. Following the merger, the consolidated company will retain the name Devon Energy and will be headquartered in Houston, while maintaining a significant operational presence in Oklahoma City. The alignment of these companies aims to create substantial value through a robust asset base primarily located in the economically critical Delaware Basin, supplemented by projected pre-tax synergies amounting to $1 billion annually.

The merger merges exceptional resources and complementary capabilities from both companies, enabling the combined entity to establish a strong foothold in the shale industry. Devon Energy’s significant land holdings are expected to drive growth for shareholders through enhanced operational efficiencies, as the company integrates innovative technologies and optimizes resource allocation.

Industry Overview

The shale industry in the United States, particularly within the Delaware Basin, has demonstrated significant growth and resilience, primarily driven by technological advancements and increasing demand for ene