Source: Fortune
Summary
Devon Energy will acquire Coterra Energy for nearly $26 billion in an all-stock merger, creating a domestic oil and gas giant. The combined company will have an enterprise value of $58 billion, including debt. The deal creates the largest oil and gas producer in the western Permian Basin. Devon CEO Clay Gaspar will remain CEO, while Coterra CEO Tom Jorden will become non-executive chairman. The deal is expected to close by the end of June, with Devon shareholders controlling 54% of the combined company.
Our Reading
The numbers tell one story. Devon Energy’s acquisition of Coterra Energy is a merger of near equals, creating a giant in the Permian Basin. The deal creates a powerhouse in the Delaware Basin, with immense operational synergies. Devon CEO Clay Gaspar says the deal is not just about getting bigger, but about creating a true merger that embraces the best from both sides. The company expects $1 billion in synergies by the end of 2027, including $350 million from reduced capital spending and $300 million from job cuts and reduced corporate costs. The stars aligning, indeed.
Author: Evan Null
