(World Oil) – Coterra Energy Inc. is exploring a combination with Devon Energy Corp., according to people familiar with the matter, a potential tie-up between two shale explorers that would be among the biggest oil and gas deals in years.
The companies — both with large positions in the oil-rich Permian Basin — are holding talks about a possible merger, said the people, who asked to not be identified because the matter is private. One option being discussed is an all-stock transaction, they said.
Coterra has a market capitalization of about $21 billion, while Devon is valued at about $23 billion.
The companies are still negotiating the terms and structure of a potential deal, the people said. There’s no certainty the talks will lead to an agreement, and other suitors could also emerge. Coterra has also held merger talks with at least one other company in the recent past, some of the people said.
Representatives for Coterra and Devon didn’t immediately respond to queries.
