Coterra, Devon Are in Advanced Talks on Combination
(Bloomberg) -- Coterra Energy Inc. and Devon Energy Corp. are in advanced talks about a combination, according to people familiar with the matter, in what would be one of the largest oil and natural gas deals in years.
The companies could announce a deal in the coming days, said the people, who asked to not be identified because the talks are private. No final decision has been made and the timing could change or talks could fall through, the people added.
Coterra rose as much as 4.6% in New York on Thursday, giving the company a market value of about $22 billion. Devon rose as much as 3.7% for a market value of roughly $26 billion.
Representatives for Coterra and Devon didn’t immediately respond to requests for comment. Bloomberg News first reported the talks earlier this month.
The discussions illustrate how big drillers are eager to consolidate after a relatively slow 2025. The deal would strengthen their positions in Permian Basin of West Texas and New Mexico, the country’s largest and most productive oil field, giving them more scale to better compete with rivals such as Exxon Mobil Corp. and Diamondback Energy Inc.
“The Permian is central to any proposed deal,” Bloomberg Intelligence analyst Vincent Piazza said. Gas-rich assets in the Appalachian region and elsewhere would not be considered essential.
“Streamlining is most plausible since diversity of assets makes it difficult to wrap in a neat theme for investors,” Piazza added.
Devon has rights to about 400,000 net acres in a fast-growing swath of the Permian known as the Delaware Basin, where Coterra also has a 346,000-acre position. Coterra also has a large position in a the Marcellus Shale.
Kimmeridge Energy Management Co., an outspoken oil and gas investor with stakes in both companies, has voiced support for a potential tie-up that would allow the combined company to focus on their Delaware basin assets.
©2026 Bloomberg L.P.
