Xin Lang Cai Jing·2026-02-02 13:38Core Viewpoint - Devon Energy and Coterra Energy announced a merger to form a shale drilling giant valued at $58 billion, marking one of the largest transactions in the oil and gas industry in recent years [1][3]. Group 1: Merger Details - The merger was officially announced on a day when U.S. oil prices fell to a four-year low, putting pressure on the shale oil industry and prompting smaller companies to consider mergers to compete with larger rivals [1][3]. - Under the all-stock transaction agreement, Devon Energy shareholders will own 54% of the combined company, while Coterra Energy shareholders will hold 46% [1][3]. - This merger is the largest in the oil and gas sector to date, surpassing the previous record held by Diamondback Energy's $26 billion cash and stock acquisition of Endeavor Energy Resources [1][3]. Group 2: Industry Implications - Analysts speculate that the merger could trigger a wave of acquisitions in the U.S. oil and gas industry after a two-year lull in transactions [1][3]. - The combined company will become one of the largest shale oil producers in the U.S., with a significant market share in the oil-rich Delaware Basin [1][3]. Group 3: Production and Land Control - According to third-quarter production data from both companies, the merged entity will control 750,000 acres in the Delaware Basin, with an expected daily production of 863,000 barrels [2][4]. - The transaction is anticipated to be completed in the third quarter of this year, pending regulatory approval [2][4].