Sources: Devon Energy and Coterra Energy, two US shale producers, are in merger talks.

People familiar with the matter have confirmed that Devon Energy and Coterra Energy were exploring the possibility of a merger, which would create one the largest independent U.S. Shale producers.

Sources said that the two companies are in early stage talks for a merger. They cautioned, however, that a transaction was not guaranteed.

Devon's shares?fell 3% while Coterra's stock rose more than 6% in response to the story. Devon's market value is around $24 billion while Coterra's is about $20 billion.

Devon and?Coterra didn't immediately respond to comments.

The combination of the two shale producers will be one of the biggest tie-ups between U.S. energy companies in recent years. Both companies are present in multiple shale formations. They have operations in the Delaware part of the Permian Basin in Texas, New Mexico, and Oklahoma's Anadarko Basin. Reporting by David French, New York; editing by Dawn Kopecki and Chizu Nomiyama.

(source: Reuters)