February 09, 2026 | Energy | North America | Active
On 2-Feb-26, Oklahoma City-based Devon Energy entered into a definitive agreement to acquire Houston-based rival Coterra Energy in an all-stock deal that would create the leading shale gas operator in the Permian Basin. Under the terms of the agreement, Coterra shareholders will receive 0.70 Devon shares per Coterra share. Based on the companies’ share price on 14-Jan-26 – the last undisturbed date prior to speculation in Bloomberg that a merger was forthcoming - the exchange ratio values Coterra at $26.54 per share, implying a 4.7% takeover premium. The merger agreement includes a customary dividend-coordination provision to avoid shareholders receiving dividends from both companies or failing to receive a dividend from either company, for any quarter. Coterra and Devon are permitted to declare quarterly dividends not exceeding $0.22 and $0.24 per share, respectively, in line with current dividend policies. Conditions to closing include 50% shareholder approval from each company and HSR clearance. A joint preliminary proxy is expected to be filed “as soon as practicable”, with an HSR notification expected within 20 business days (by 2-Mar-26). Both firms have also agreed to use reasonable best efforts to close the transaction and obtain regulatory approvals, subject to a burdensome-condition limitation on any remedy that would ...
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