Devon Energy to Acquire Coterra Energy in a $25.35 Billion All-Stock Deal

Devon Energy Corporation (DVN) entered a merger agreement on February 2, 2026, to acquire Coterra Energy Inc. (CTRA) in an all-stock deal valued at $25.35 billion.

Deal Structure:

Coterra shareholders will receive a fixed exchange ratio of 0.70 shares of Devon common stock for each share of Coterra common stock.

The transaction implies a value of $28.15 per Coterra share, at a discount of 2.44% from the stock’s last close.

Company Profile:

Coterra is an independent oil and gas company based in Houston, Texas, focused on the exploration and production of oil, natural gas, and natural gas liquids across the Permian Basin, Marcellus Shale, and Anadarko Basin, with a diversified asset base and operations across key U.S. shale plays.

Devon is a U.S. oil and gas producer focused on the exploration and production of oil, natural gas, and natural gas liquids, with a diversified multi-basin portfolio anchored by a premier position in the Delaware Basin.

Deal Details and Timeline:

Last month, Reuters reported that Devon Energy and Coterra Energy were exploring a potential merger. The stock was trading at $25.36 when the two companies were in early-stage talks for a combination.

The combination will create a leading large-cap shale operator with a high-quality asset base anchored by a premier position in the core of the Delaware Basin.

The combined company will be called Devon Energy, with its main headquarters in Houston and a major office in Oklahoma City.

Devon said it is committed to returning capital to shareholders through a planned quarterly dividend of $0.315 per share and a new share repurchase program of more than $5 billion, both subject to board approval.

Devon shareholders will own about 54% of the combined company, while Coterra shareholders will own about 46%.

The deal is expected to close in the second quarter of 2026.

The merger will create one of the world’s leading shale producers, with third-quarter 2025 production expected to exceed 1.6 million barrels of oil equivalent (Boe) per day, including more than 550,000 barrels of oil per day and 4.3 billion cubic feet of gas per day.

The board will have 11 members, with six from Devon and five from Coterra. Devon CEO Clay Gaspar will be CEO of the combined company, and Coterra CEO Tom Jordan will serve as Non-Executive Chairman. Devon will name the lead independent director. The CEO and executive leadership team will be based in Houston and will include leaders from both Devon and Coterra.

Goldman Sachs and J.P. Morgan Securities served as financial advisors to Coterra, with legal counsel provided by Gibson, Dunn & Crutcher. Devon was advised financially by Evercore and legally by Skadden, Arps, Slate, Meagher & Flom.

Devon is buying Coterra for 5.72 times its EBITDA.

Deal Metrics:

For more details about this merger and acquisition transaction, please visit the Deal Metrics page here:

Deal Metrics for the acquisition of Coterra Energy Inc. (CTRA) by Devon Energy Corporation (DVN)

The Deal Metrics page for each merger or acquisition includes:

• A spread history chart of the merger from announcement through completion or failure.
• Every event as the merger progresses: from HSR period expiration to regulatory approvals, shareholder votes, etc.
• News and SEC filings.
• A history of deal updates.
• And much more.

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Editor’s Note: Baranjot Kaur contributed to this article