Coterra stock rises, Devon falls following report on merger talks

Investing.com -- Coterra Energy Inc. (NYSE: CTRA) stock rose 4% Thursday while Devon Energy Corp. (NYSE: DVN) shares fell 1.5% following reports that the two shale producers are in talks about a potential merger that would create one of the largest oil and gas companies in the U.S.

The companies are discussing a possible all-stock transaction, according to a report from Bloomberg News, citing people familiar with the matter who asked not to be identified. Both firms have substantial operations in the oil-rich Permian Basin, making the potential combination strategically significant for the American energy sector.

Coterra, with a market capitalization of about $21 billion, and Devon, valued at approximately $23 billion, are still negotiating the terms and structure of a potential deal. The talks may not necessarily lead to an agreement, and other suitors could emerge, sources indicated.

The market’s mixed reaction reflects the cautious sentiment that typically surrounds "mergers of equals" in the volatile oil and gas industry. Coterra has reportedly held merger talks with at least one other company recently, suggesting the firm is actively exploring consolidation opportunities.

If completed, the merger would rank among the biggest oil and gas deals in recent years, potentially reshaping the competitive landscape in the U.S. shale sector. The combined entity would have enhanced scale and operational synergies across key production regions.

You May Also Be Interested In

• Software M&A heats up: Which SaaS stocks could be next for private equity?
• Datavault AI (DVLT) Will Acquire CyberCatch in an All-Cash Transaction
• Proficient Auto Logistics completes Hansen & Adkins acquisition