Independent oil and natural gas producer Devon Energy plans to acquire Coterra Energy in a roughly $21 billion deal that would establish a new U.S. shale heavyweight.
Devon CEO Clay Gaspar told analysts and investors during a webcast Monday that combining the two companies would create “one of the largest shale producers in the world.”
The merged oil and gas company’s size, he said, will unlock “operational and financial advantages that simply aren’t available to operators of less scale.”
Under the proposed agreement, Coterra shareholders would receive 0.7 Devon shares for each Coterra share they own. If the deal is ultimately approved and finalized, Devon shareholders would own 54 percent of the company. Devon’s headquarters would shift from Oklahoma City to Houston, where Coterra is currently based.
