US shale producers Devon Energy and Coterra Energy in merger talks, sources say

Coterra Energy

15/01/2026 18:05

Adds share price reaction in paragraph 3, operations in paragraph 5

By David French

NEW YORK, Jan 15 (Reuters) - Devon Energy  DVN.N and Coterra Energy CTRA.N are exploring a potential merger, in a deal which could create one of the largest independent U.S. shale producers, people familiar with the matter said.

The two companies are said to be in early-stage talks for a combination, said the sources, who cautioned a transaction was not guaranteed and spoke on condition of anonymity to discuss confidential deliberations.

Shares in Devon slipped 3%, while Coterra's stock jumped more than 6% on the Reuters story. Devon has a market value of around $24 billion, while Coterra is worth about $20 billion.

Devon and Coterra did not immediately respond to requests for comment.

A combination between the two shale producers would be among the largest tie-ups between U.S. energy producers in recent years. Both companies have operations across multiple shale formations, with both present in the Delaware portion of the Permian Basin in Texas and New Mexico and Oklahoma's Anadarko basin.

 (Reporting by David French in New York; Editing by Dawn Kopecki, Chizu Nomiyama and Chris Reese)

 ((davidj.french@tr.com))