Coterra Energy and Devon Energy have confirmed that their respective management teams are engaged in preliminary discussions regarding a potential strategic combination focused on their complementary positions in the Permian Basin. No definitive agreement has been reached, and there can be no assurance that these discussions will result in a transaction.

The companies noted that any potential combination would be evaluated against strict criteria centered on shareholder value creation, capital discipline, balance sheet strength, and operational excellence.

“Coterra has built a resilient, diversified portfolio anchored by high-quality Permian assets and a disciplined capital return framework,” said Tom Jorden, Chairman, President and Chief Executive Officer of Coterra. “As we continuously assess opportunities to enhance long-term value, we remain committed to maintaining financial strength and delivering competitive returns to shareholders.”

“Devon’s focus has been on scale, efficiency, and free cash flow generation,” said Rick Muncrief, President and Chief Executive Officer of Devon Energy. “Any potential strategic action must reinforce our ability to sustainably grow free cash flow, enhance operational synergies, and preserve our commitment to shareholder returns.”

Industry observers have pointed to the potential for significant operational synergies in the Permian Basin, including optimized development planning, expanded inventory depth, and cost efficiencies across drilling, completion, and infrastructure. A combination, if pursued, could create one of the largest independent operators in the basin with a deep, multi-decade inventory and enhanced free cash flow durability across commodity cycles.

Both companies emphasized that they will not comment further on the discussions unless and until a definitive agreement is executed or the discussions are otherwise concluded.

KeyFacts Energy: Coterra Energy US country profile   l   Devon Energy US country profile