Two major U.S. oil and gas producers are reportedly in advanced negotiations over a potential combination that market participants say could be announced within days. The talks involve Coterra Energy Inc. and Devon Energy Corp., both of which hold significant acreage in the Permian Basin's Delaware sub-basin and have been active operators in their respective portfolios.
Market moves followed the report. Coterra shares climbed 3% to $28.62 during Thursday trading, implying a market capitalization of roughly $21.8 billion. Devon shares rose about 1.97% to $40.61, valuing that company at approximately $25.4 billion. Those price moves reflect investor attention to the potential scale and strategic fit of a tie-up between the two firms.
At the center of the talks are large positions in the Delaware Basin. Devon controls about 400,000 net acres in the region, while Coterra has a roughly 346,000-acre position. In addition to its Permian footprint, Coterra also holds material natural gas assets in Pennsylvania's Marcellus Shale, adding a gas-weighted complement to Devon's portfolio if a deal proceeds.
Sources close to the discussions indicate the talks are advanced, but no binding agreement has been signed. The companies have yet to make a final decision, and the timeline remains subject to change. Negotiations could still break down or be extended, leaving the ultimate outcome uncertain.
Such a transaction, should it occur, would rank among the larger consolidations in the oil and gas sector in recent years, by market value and by the scale of combined acreage. The report did not provide further details on potential deal structure, financing, governance, or regulatory considerations, and current public filings do not reflect a concluded transaction.
Context limitations: Reporting on these talks indicates a developing situation with limited public detail. No final terms, formal announcement date, or definitive corporate actions have been disclosed.