A person familiar with the matter said on Thursday that Coterra Energy and Devon Energy may announce an agreement to merge as early as next week. If completed, the transaction would represent the largest consolidation in the U.S. shale industry in almost two years.
Reports indicate the discussions have reached an advanced stage and that the deal could be presented as a merger of equals. Neither Coterra nor Devon has issued an immediate public comment in response to inquiries, and a formal announcement has not been made.
Observers note that a combination of the two producers would rank among the largest mergers between U.S. energy companies in recent years. The prospective deal is unfolding while U.S. crude prices face pressure from a near-term global oil glut, coupled with the prospect of additional supplies entering markets in the coming years from Venezuela.
Market trading reacted to the news and to crude’s modest recovery: shares of Coterra rose by more than 3% in afternoon trading, while Devon’s stock gained about 2%, with both moves supported by the uptick in oil prices.
Earlier this month, media coverage had already flagged that the two firms were in talks about a potential combination. That ongoing dialogue now appears to have advanced toward a possible transaction, though timing and final terms remain uncertain until any agreement is formally disclosed.
Context and market impact
The potential merger would reshape the landscape among U.S. shale producers by creating a larger combined operator. The deal’s relevance to energy markets comes at a time when crude pricing dynamics are influenced by temporary oversupply concerns and anticipated future supply shifts.
Until the companies issue definitive statements, investors and other market participants will be watching for details on governance, asset mixes and any declarations about how the transaction will be structured and presented.