Source: US shale producers Coterra and Devon are in advanced merger talks.

Sources familiar with the matter said that Coterra Energy and Devon Energy, two U.S. producers of shale gas, could announce a merger agreement as soon as next week.

The combination of U.S. energy companies would be?among?the largest in recent years.

Both companies are active in multiple shale formations. They have both operations in the Delaware portion in Texas, New Mexico and Oklahoma’s?Anadarko Basin. The potential deal is set against the backdrop of Thursday's spike in crude prices, which was attributed to fears that the U.S. might take military action against Iran. Oil prices were previously under pressure because of concerns over a global glut in the near future. Coterra shares rose 2.6% while Devon's were marginally higher in the afternoon trading. Coterra and Devon Energy didn't immediately respond to requests for comment. Bloomberg News reported the first that the talks between Coterra and Devon Energy were in an advanced state, and could be described as "a merger of equals". In early October, Bloomberg News reported that the two companies had been in discussions for a potential?merger. Although energy deals were less active in 2025 than they had been previously, the arguments for consolidation among U.S. producers of oil and gas remain valid. The benefits include economies of scale, which will help control costs in a low-price environment for crude oil, and securing more resources at a moment when many shale formations are maturing, with new prime development areas at a premium.

(source: Reuters)