This $58 Billion Merger Is Creating a New U.S. Oil and Gas Giant
2026-03-01 14:09:00 ET
Devon Energy (NYSE: DVN) shareholders will end up owning 54% of the overall company after its merger with Coterra Energy (NYSE: CTRA) is completed. While this is being billed as a merger, it is really more of an acquisition, with Coterra shareholders receiving 0.7 Devon shares for every Coterra share they own. That said, this pairing looks like a very attractive growth opportunity for Devon.
Devon Energy doesn't actually need to buy another company to grow its business. The U.S. onshore energy company can simply drill more wells. That, however, is a slow and tedious process, and it has to be juxtaposed against depletion. Every barrel of oil Devon pulls from the ground is one less barrel it has to produce in the future. A quicker way to grow is to buy another company, which also adds more developable land to support future growth.
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