US oil and gas exploration and production companies Devon Energy and Coterra Energy have signed a definitive agreement to merge in an all-stock transaction, creating a large-cap shale operator with an asset base mainly located in the Delaware Basin in West Texas and southern New Mexico (United States) (Coterra Energy press release, 02/02/2026). The transaction, which implies a combined enterprise value of around US$58bn based on Devon’s closing price on 30 January 2026, should close in the second quarter of 2026, subject to regulatory approvals and customary closing conditions.
The combined company will have an output of around 1.6 mboe/d (based on third quarter 2025 figures), including 550 kb/d of oil and 4.3 bcf/d (44 bcm/year) of natural gas. Production in the Delaware Basin should reach 863 kboe/d (around 54% of total output) across nearly 750,000 net acres (more than 30,000 hectares) in the core of the play.
In 2024, the United States produced 19.4 mbl/d of crude oil, as well as 1,092 bcm of natural gas.