Devon Energy to Acquire Coterra for $21.5 Billion

The merger will create a new shale giant in the Permian Basin.

Feb. 3, 2026 at 12:15am

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Devon Energy has agreed to acquire Coterra Energy for $21.5 billion, creating a combined company that will be a dominant force in the Permian Basin with a projected daily output of 1.6 million barrels of oil equivalent.

Why it matters

The merger solidifies Devon Energy's position as a leading player in the Permian Basin, one of the most prolific oil and gas producing regions in the United States. The combined company will have significant scale and resources to capitalize on the ongoing energy transition.

The details

The new entity will retain the Devon Energy name and maintain its headquarters in Houston, Texas. The merger is expected to generate significant cost savings and operational synergies for the combined company.

  • The acquisition agreement was announced on February 3, 2026.

The players

Devon Energy

An American oil and natural gas exploration and production company headquartered in Oklahoma City, Oklahoma.

Coterra Energy

An independent oil and natural gas exploration and production company headquartered in Houston, Texas.

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What they’re saying

“This merger cements our position as a dominant force in the Permian Basin and positions us for long-term success in the evolving energy landscape.”

— Rick Muncrief, CEO of Devon Energy (energycentral.com)

The takeaway

The acquisition of Coterra by Devon Energy creates a new energy giant that will have significant scale and resources to capitalize on the ongoing energy transition and solidify its position as a leader in the Permian Basin, one of the most important oil and gas producing regions in the United States.