Oklahoma City-based Devon Energy and Houston's Coterra Energy are merging in an all-stock deal to become a large-cap producer with a top position in the Permian Basin as shale operators consolidate to cut costs and boost scale.

The merger between Devon and Coterra would create a $58 billion oil and gas company based in Houston, the companies said.

Devon Energy and Coterra Energy agreed to merge in a roughly $58 billion all-stock deal, including debt. Coterra shareholders would receive 0.7 shares of Devon for each share of Coterra they hold, the companies said Monday,

Devon Energy announces merger with Coterra Energy, to move headquarters to Houston

Devon Energy announced Monday it is set to move its headquarters to Houston following its merger with Coterra Energy.

Oklahoma City-based Devon Energy and Houston’s Coterra Energy are merging in an all-stock deal to become a large-cap producer with a top position in the Permian Basin as shale operators consolidate to cut costs and boost scale.

A merger between to big independent upstream companies, Devon Energy and Coterra Energy, creates a new powerhouse on the U.S. shale scene.

Devon Energy has announced a multi-billion-dollar merger with Coterra Energy in an agreement that will move the company's headquarters to Texas.