Which two energy companies announced a $58 billion merger in February 2026, creating one of the largest shale oil and gas producers in the United States?

In a significant development for the energy sector, Devon Energy and Coterra Energy announced a definitive agreement in February 2026 to merge in an all-stock transaction. This deal is valued at approximately $58 billion, including debt, and is set to create one of the largest shale oil and gas producers in the United States. The combined company will operate under the Devon Energy name and aims to leverage complementary assets and operations to enhance scale and efficiency.

The merger brings together extensive acreage positions, particularly strengthening the combined entity's footprint in the Delaware Basin, a highly productive part of the Permian Basin. It also incorporates Coterra's assets in the Marcellus and Anadarko basins, diversifying the new company's portfolio. This strategic consolidation is expected to result in significant annual pre-tax synergies, projected to reach $1 billion by year-end 2027, driven by operational optimization, technology integration, and streamlined corporate costs.

This move reflects a broader trend of consolidation within the U.S. unconventional energy sector, as companies seek to build scale, improve capital efficiency, and ensure long-term value creation for shareholders. The combined company is expected to boast a pro forma production of over 1.6 million barrels of oil equivalent per day, positioning it among the top echelon of global independent producers. The transaction, unanimously approved by both companies' boards, is anticipated to close in the second quarter of 2026, pending regulatory and shareholder approvals.