M&A

As rumored last week, Devon Energy and Coterra Energy are merging to create a shale drilling giant. The headlines say it’s a “$58 billion deal.” Beneath the headlines, you’ll learn that Devon is buying, Coterra is being acquired, and that Devon is paying (in stock only) $21.4 billion for Coterra Energy. The two companies combined into one will be worth (market capitalization) around $58 billion, which is where that headline number comes from. The merger is expected to take place in the second quarter of this year. The new company will keep the Devon Energy name. Coterra will be no more, just like Cabot Oil & Gas was no more after it merged with Cimarex Energy to form Coterra in October 2021 (see Cimarex Takes Over Cabot, Merged Co. Called “Coterra Energy”). Read More “Devon Energy Buying Coterra Energy for $21.4B in All-Stock Merger”

All the major media outlets (Reuters, Bloomberg, Financial Times) are reporting that a merger announcement between Coterra Energy and Devon Energy is very close, likely to happen next week, according to sources “familiar with the discussions.” MDN reported on the rumors of a potential merger earlier this month (see Rumor Mill Lights Up: Coterra Considers Merger with Devon Energy). The unnamed sources say the merger will be billed as a merger of equals. Which is rubbish. You’ll know which company is doing the buying when it’s announced which CEO and board will run the merged entity. Read More “Coterra/Devon $60B Merger Likely to be Announced Next Week”

Last Friday, MDN reported that the rumor mill was in overdrive with chatter that Devon Energy and Coterra Energy are exploring a potential merger “that would be among the biggest oil and gas deals in years” (see Rumor Mill Lights Up: Coterra Considers Merger with Devon Energy). Since that time, we’ve not heard anything further… until we came across an article in the Oklahoma Energy Today publication stating that the merger talks are in an “advanced” stage. Read More “Devon Energy, Coterra Energy Said to be in “Advanced Merger Talks””

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. Read More “Rumor Mill Lights Up: Coterra Considers Merger with Devon Energy”