Coterra Energy (CTRA) in Merger Talks with Devon Energy (DVN), Potentially Major Oil Deal
Written by Emily J. Thompson, Senior Investment Analyst
Source: seekingalpha
- Merger Negotiations: Coterra Energy (CTRA) shares rose 3.2% on Thursday following a Bloomberg report that it is in talks with Devon Energy (DVN) for a merger, which could become one of the largest oil and gas deals in years, reflecting positive market sentiment towards the potential deal.
- Resource Synergy: Both companies hold significant positions in the Permian Basin, with Coterra owning 346,000 acres and Devon approximately 400,000 acres, and a merger would enhance their competitiveness against industry giants like Exxon Mobil and Diamondback Energy.
- Diverse Operational Footprint: Devon has drilling operations in the Rocky Mountain region, southeast Texas, and Oklahoma, while Coterra operates in western Oklahoma and Pennsylvania's Marcellus Shale, and a merger would create a more diversified operational network, strengthening overall market competitiveness.
- Cash Flow Potential: Coterra is projected to generate over $2 billion in free cash flow by 2026, and a merger would further solidify its financial foundation, boosting investor confidence and providing capital for future growth.
Analyst Views on CTRA
Wall Street analysts forecast CTRA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CTRA is 32.36 USD with a low forecast of 27.00 USD and a high forecast of 37.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
13 Buy
1 Hold
0 Sell
Strong Buy
Current: 25.360
Low
27.00
Averages
32.36
High
37.00
Current: 25.360
Low
27.00
Averages
32.36
High
37.00
About CTRA
Coterra Energy Inc. is an exploration and production company based in Houston, Texas with focused operations in the Permian Basin, Marcellus Shale and Anadarko Basin. The Company is engaged in the development, exploration and production of oil, natural gas and natural gas liquids exclusively within the continental United States. Its Permian Basin operation consists of approximately 345,000 net acres. Its development activities are primarily focused on the Wolfcamp Shale and the Bone Spring formation in Culberson and Reeves Counties in Texas and Lea and Eddy Counties in New Mexico. Its Marcellus Shale operation includes properties that are principally located in Susquehanna County, Pennsylvania, where it holds approximately 186,000 net acres in the dry gas window of the Marcellus Shale. Its Anadarko Basin operation holds around 182,000 net acres that are located in Oklahoma. Its development activities are primarily focused on both the Woodford Shale and the Meramec formations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
