Tuesday, February 3, 2026: 6 for the month, 59 for the quarter, 59 for the year,
41959, conf, Petro-Hunt, State 162-100-16B-21-2H,
41352, conf, Hess, GO-Beck Living TR-156-98-2017H-3,
39807, conf, BR, Mazama 1C,
RBN Energy: for Devon and Coterra, a Permian match made in hydrocarbon heaven. Link here. Archived.
The February 2 announcement that Devon Energy and Coterra Energy
have agreed to merge didn’t come as a huge surprise — it had been
rumored for weeks. The two large oil and gas producers have highly
complementary assets in two major basins (the Permian’s Delaware and the
Anadarko) and, as they see it, their combination will likely provide $1
billion in synergy-related savings by the end of next year. Finally —
and this is important — a Devon/Coterra combination had been urged on by
activist investor Kimmeridge Energy Management, with Coterra in
particular, for falling short of its potential. In today’s RBN blog,
we’ll discuss the deal and its implications.
Devon Energy and Coterra Energy’s Acreage in the Delaware Basin
Figure 1. Devon Energy and Coterra Energy’s Acreage in the Delaware Basin. Source: Devon
For
Devon and Coterra (like ConocoPhillips/Marathon), the Permian — or,
more specifically, the Delaware Basin in West Texas and southeastern New
Mexico — is key. As shown in Figure 1 above, Devon has about 400,000
net acres (orange-shaded areas) and 496 Mboe/d of production in the play
(as of Q3 2025), 45% of it crude oil, while Coterra has 346,000 net
acres (teal-shaded areas) and 367 Mboe/d of production (44% oil).
Devon
and Coterra are also active in the Anadarko (left-most map in Figure 2
below), where significant portions of their combined 520,000 net acres
in Oklahoma are complementary and their pro forma production is expected
to average 173 Mboe/d.
