Coterra Energy (Cabot O&G) | Devon Energy | Energy Companies | Industrywide Issues | M&A | Pennsylvania | Susquehanna County
Analysts Speculate About the Future of Coterra’s Marcellus Assets
Yesterday, MDN brought you the big news that Devon Energy is buying out and merging with Coterra Energy, paying $21.4 billion in Devon stock (see Devon Energy Buying Coterra Energy for $21.4B in All-Stock Merger). The focus of the merger is the two companies’ complementary acreage in the oil-rich Delaware Basin, a subbasin in the Texas Permian. Analysts are now discussing what a post-merger company will look like in terms of assets. Will the combined company (keeping the Devon name) keep or sell its prolific Marcellus assets in Susquehanna County, PA? Read More “Analysts Speculate About the Future of Coterra’s Marcellus Assets”
Not that he isn’t already a very rich man, but Coterra Energy CEO Tom Jorden stands to rake in an additional $6 million to $9 million (possibly much more) from a “golden parachute” if the proposed merger between Coterra and Devon Energy goes through. Based on the reports following the merger announcement between Coterra and Devon, Coterra’s upper management (in particular, Jorden) is protected by substantial “golden parachute” (change-in-control) agreements. These agreements were specifically updated just before the deal was made public to ensure executive retention and fair treatment during the transition. 
A nice bump up in permit numbers last week, mainly due to Pennsylvania. The Marcellus/Utica region received a combined 27 permits last week, Jan. 12 – 18. Pennsylvania issued 21 new permits, Ohio issued 5, and West Virginia issued just 1. Among the drillers receiving new permits last week: Antero Resources, Coterra Energy, EQT, Expand Energy, Gulfport Energy, and Seneca Resources. 
As we point out in a companion post today, potential merger talks between Devon Energy and Coterra Energy are in an “advanced” stage (see Devon Energy/Coterra Energy Said to be in “Advanced Merger Talks”). One of the reasons (perhaps THE reason) why Coterra is considering a merger is ongoing pressure from “activist” investor Kimmeridge, which launched a public campaign last November to force Coterra to split the company, to sell off its Marcellus (and Anadarko) assets, and focus 100% on oil drilling in the Permian (see 
The rumor mill is in overdrive today with news that Coterra Energy is in serious talks with Devon Energy exploring a potential merger “that would be among the biggest oil and gas deals in years.” While the primary driver of this deal is gaining massive scale in the Permian Basin, Coterra’s substantial Marcellus Shale assets in northeastern Pennsylvania (NEPA) are a major point of speculation for analysts and investors. It appears possible (likely?) that a combined company would sell off the PA Marcellus assets. 
We’ll open this post with this statement: There are no active rumors (that we are aware of) that Permian/Anadarko/Marcellus driller Coterra Energy is considering a merger with Permian/Anadarko/Monteny driller Ovintiv (formerly Encana). We did spot a post by Rystad Energy analysts who theorize that both companies (peers) would make a great combined company. The comments are part of a post titled “US shale braces for next consolidation wave as smaller players seek scale.” Rystad’s theory is that we will soon see smaller independents begin to merge to defend against the recent merger mania by larger companies, including ExxonMobil, Diamondback, Occidental, and ConocoPhillips. 
The highly functional and responsible Susquehanna River Basin Commission (SRBC), unlike its highly dysfunctional and irresponsible counterpart, the Delaware River Basin Commission (DRBC), continues to support the shale energy industry by approving water withdrawals and consumptive use requests for responsible and safe shale drilling. The SRBC published a notice in the December 6 Pennsylvania Bulletin that the Executive Director of the SRBC approved and/or renewed 76 general water use permits from September 1 through October 31 for individual shale gas well drilling pads in Blair, Bradford, Cameron, Centre, Clearfield, Clinton, Elk, Huntingdon, Lycoming, McKean, Sullivan, Susquehanna and Tioga counties in Pennsylvania and one permit to withdraw water in Steuben County, New York. 
In Q3 2025, U.S. E&Ps (drillers) successfully leveraged rigorous cost-cutting and capital discipline to maintain stable earnings despite commodity price volatility. With lifting costs down 16% since mid-2022, producers offset revenue pressures through efficiency and consolidation. RBN Energy reports that performance diverged by sector in 3Q: oil-weighted producers saw earnings rise 19% on stabilized crude prices and reduced impairments, while gas-weighted peers suffered a 27% earnings slump due to lower realizations. Total production increased 4.7%, mainly driven by oil majors. Looking ahead to Q4, the outlook shifts; oil producers face headwinds as prices dip toward $60/bbl, while natural gas producers anticipate a strong finish fueled by winter demand and rising Henry Hub prices. 
It’s time to revisit a topic we’ve covered many times before — philanthropy in the Marcellus/Utica region. Drillers and pipeline companies in the M-U region already contribute to the region through the generous lease bonuses and royalties paid to landowners. In addition to the billions that flow to landowners, M-U companies cumulatively donate millions of dollars to local communities and nonprofit organizations. Here’s the latest example of that in action: The Marcellus Shale Coalition (MSC) says its members (and their employees) have embraced this Thanksgiving season by giving back through food drives, volunteering at local charities, and supporting community initiatives. 
In October 2021, one of the Marcellus’ premier drillers, Cabot Oil & Gas, merged with/into Cimarex Energy, an oil driller focused on the Permian and Anadarko basins (see