Xin Lang Cai Jing·2026-02-03 00:26Core Viewpoint - Devon Energy has agreed to acquire Coterra Energy Inc. in a stock transaction valued at approximately $21.4 billion, creating one of the largest shale oil companies globally [1][3]. Group 1: Transaction Details - Under the agreement, Coterra shareholders will receive 0.7 shares of Devon Energy for each share they own, representing about a 12% premium based on stock prices prior to mid-January negotiations [1][3]. - The transaction is expected to be completed in the second quarter, indicating a trend of consolidation among shale oil companies as many prime drilling locations in the U.S. have been developed [4]. Group 2: Market Impact - Following the announcement, Coterra's stock fell by 4.6%, marking its largest single-day drop in nearly a month, while Devon Energy's stock decreased by 2.6% [4]. - The combined company will solidify its position in the Delaware Basin and will be better positioned to compete with rivals such as ExxonMobil and Diamondback Energy Inc. [4]. Group 3: Company Structure Post-Merger - The name Devon will be retained for the merged entity, and Devon Energy's CEO, Clay Gaspar, will continue to lead the company after the merger [4]. - Post-merger, Devon Energy shareholders will own 54% of the combined company, while Coterra shareholders will hold 46% [5]. Group 4: Production Expectations - The merged company is projected to become one of the largest shale oil and gas producers in the U.S., with expected daily production exceeding 1.6 million barrels of oil equivalent in the third quarter [2][5].