Coterra Energy Inc. and Devon Energy announced a $58 billion all-stock merger, creating one of the largest shale producers in the Permian Basin. The combined companies currently produce 1.6 million barrels of oil per day, with Coterra shareholders receiving 0.70 shares for each share held and Devon owning 54% of the new entity.

Clay Gaspar, Devon’s President and CEO, highlighted the diverse asset base and potential synergies of the merger, projecting annual pre-tax synergies of $1 billion. Following the announcement, Susquehanna raised Coterra Energy’s target price to $34, while Roth Capital lowered theirs to $28. 25 out of 31 analysts covering CTRA have a “Buy” rating, with a median target price of $33, implying an upside of 17.21%.

Read more at Yahoo Finance: Coterra Energy (CTRA) and Devon Energy (DVN) to Merge in an All-Stock Deal Worth $58 Billion