Devon, Coterra Stocks Fall on $58B All-Stock Merger

Merger Details and Market Reaction

Devon Energy and Coterra Energy have announced an all-stock merger agreement, creating a combined enterprise valued at approximately $58 billion. Following the news, Devon Energy stock fell 3% while Coterra Energy stock dropped 4.2% in premarket trading.

Overview of the New Entity

The transaction will form a leading U.S. shale operator. Devon shareholders will own approximately 54% of the merged company, with Coterra shareholders holding the remaining 46%. The combined entity projects production to exceed 1.6 million barrels of oil equivalent per day by the third quarter of 2025.

Synergies and Strategic Impact

The companies aim to leverage complementary assets, particularly in the Delaware Basin. They expect to realize $1 billion in annual pre-tax synergies by the end of 2027 through operational and corporate efficiencies. The deal is expected to be accretive to key per-share financial metrics.

Summary and Outlook

The merger, which will operate under the Devon Energy name, is anticipated to close in the second quarter of 2026. The transaction remains subject to customary regulatory approvals and approval from shareholders of both companies.

FAQ

Q: What is the value of the Devon and Coterra merger?
A: The all-stock deal values the combined enterprise at approximately $58 billion.

Q: How will the new company be structured?
A: Devon shareholders will own 54% and Coterra shareholders 46%. The company will operate under the Devon Energy name.

Source: Investing.com