Report: OKC-based Devon Energy in merger talks with Coterra Energy
Report: OKC-based Devon Energy in merger talks with Coterra Energy
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NEW YORK - Oklahoma City-based Devon Energy and Coterra Energy are exploring a potential merger, in a deal that could create one of the largest independent U.S. shale producers, people familiar with the matter said.
Devon’s corporate headquarters are in downtown Oklahoma City, while Coterra is based out of Houston Texas but also has offices in downtown Tulsa.
A possible combination, which would rank among the largest between U.S. energy producers in recent years, comes as U.S. crude prices remain pressured by a near-term global oil glut and the prospect of higher supplies entering the market in coming years from Venezuela.
More: OKC’s Devon Energy surpasses expectations for 3rd-quarter profit; company shares rise
The two companies are said to be in early-stage talks for a combination, said the sources, who cautioned a transaction was not guaranteed and spoke on condition of anonymity to discuss confidential deliberations.
Shares in Devon slipped 3%, while Coterra’s stock jumped more than 6% on the Reuters story. Devon has a market value of around $24 billion, while Coterra is worth about $20 billion.
Devon and Coterra did not immediately respond to requests for comment from The Oklahoman.
The talks come on the heels of another major merger involving an Oklahoma-based energy company. In October 2024, Chesapeake Energy acquired Southwestern Energy and renamed the newly merged company Expand Energy. The headquarters for Expand stayed on Chesapeake’s once-sprawling campus in north Oklahoma City. That merger created the country’s largest natural gas producer.
While energy dealmaking was subdued in 2025, versus prior record-breaking years, arguments for consolidation among U.S. oil and natural gas producers remain valid. Benefits include economies of scale which would help control costs within a depressed price environment for crude, as well as securing additional resources at a time when many shale basins are maturing and new prime development land is at a premium.
Devon and Coterra have operations across multiple shale formations, with both present in the Delaware portion of the Permian basin in Texas and New Mexico and Oklahoma’s Anadarko basin.
Devon also has assets in South Texas’ Eagle Ford play, as well as North Dakota’s Williston basin. Coterra has a significant presence in Appalachia, having been formed in 2021 through a merger of Cimarex Energy and Marcellus-focused Cabot Oil & Gas.
Contributing: Oklahoman staff reports
This story was updated to add new information.