Devon Energy Corp. (DVN), on Monday announced a definitive agreement to merge with Coterra Energy (CTRA) in an all-stock transaction, creating a large-cap shale operator with a position in the core of the Delaware Basin.
The merger is expected to close in the second quarter of 2026.
The transaction is expected to unlock about $1 billion in annual pre-tax synergies through capital efficiency gains, technology integration and optimized capital allocation.
The combined company will retain the Devon Energy name and be headquartered in Houston, with a significant presence in Oklahoma City.
Under the terms of the deal, Coterra shareholders will receive 0.70 shares of Devon stock for each Coterra share held.
Based on Devon's closing price on January 30, the transaction implies a combined enterprise value of approximately $58 billion.
Devon shareholders are expected to own about 54% of the combined company, with Coterra shareholders holding about 46% on a fully diluted basis.
The combined company is expected to hold more than 10 years of high-quality inventory in the Delaware Basin and generate durable free cash flow.
In the pre-market trading, 2.96% lesser at $39.01 on the New York Stock Exchange.
In the pre-market trading 3.76% lesser at $27.75 on the New York Stock Exchange.
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June 19, 2026 16:46 ET Major central banks continued to dominate the economic news flow this week too, led by the Federal Reserve, as they announced their latest policy decisions. The Federal Reserve policy session was in focus as it was the first to be led by the new chief Kevin Warsh. In Europe, central banks of the U.K. and Switzerland announced their rate decisions. In Asia, the Bank of Japan drew attention for its policy moves, while data out of China threw some light on the state of the economy.