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An Insight Into The Devon Energy + Coterra $21.8 Billion Merger — Is Their MOAT May Be Getting Thinner?

Devon Energy just announced a $21.4 billion all-stock acquisition of Coterra, positioning itself as one of the largest U.S. shale producers. While the headline deal size grabbed attention, the real story lies beneath the surface—in operational overlaps that could alter Devon’s cost structure and long-term margins. The market sees a bloated transaction funded by undervalued equity. But Devon isn’t chasing scale for its own sake. This is a targeted bet on one basin that already accounts for most of its capital allocation. And in that basin, the math shifts quickly when you double down on contiguity.