Coterra Energy and Devon Merge in $58 Billion All-Stock Deal
Coterra Energy and Devon Energy will merge in a $58 billion all-stock deal that grants Coterra shareholders 0.70 share for each held and gives Devon 54% of the combined company. The merged entity will produce 1.6 million barrels of oil equivalent per day and target $1 billion in synergies.
1. Merger Structure
Coterra Energy and Devon Energy have agreed to an all-stock merger valued at $58 billion, with Coterra shareholders receiving 0.70 shares of the combined company for each share held. Post-transaction, Devon will own 54% of the new entity, giving it majority voting control and board representation.
2. Production and Synergies
The combined company will produce 1.6 million barrels of oil equivalent per day, positioning it among the largest shale producers in the Permian Basin. Management projects $1 billion in annual pre-tax cost synergies from operational integration and optimized asset deployment.
3. Analyst Outlook
Susquehanna raised its target price on Coterra to $34 from $32 and maintained a Positive rating, while Roth Capital cut its target to $28 from $30. Of 31 analysts covering the stock, 81% rate it Buy and the median target of $33 implies about 17% upside, with the highest estimate at $40.