Devon Energy Eyes Marathon Oil, Weighs Strategic Acquisitions To Boost US Shale Presence

Oil and gas player Devon Energy Corp DVN is reportedly exploring potential acquisition opportunities to bolster its presence in the U.S. shale sector and has engaged in preliminary discussions regarding a potential merger with Marathon Oil Corp MRO. 

Marathon Oil boasts a market capitalization of approximately $17.5 billion.

Citing sources close to the discussion, Bloomberg noted that combining the two companies makes strategic sense due to their overlapping operations in several key basins across the Midwestern United States, including Oklahoma, Texas, and New Mexico regions. 

In addition to the talks with Marathon Oil, Devon Energy is also actively considering a strategic move involving CrownRock LP, a privately held company operating in the prolific Permian Basin. 

The report added that CrownRock has been up for sale and could potentially command a price exceeding $10 billion.

Bloomberg notes Devon Energy's proactive stance in exploring significant acquisition opportunities, potentially impacting the future landscape of the U.S. shale industry. 

As the company mulls these strategic moves, the broader energy sector remains on the lookout for similar consolidation efforts, with noteworthy recent developments such as Chesapeake Energy Corp CHK considering an acquisition of rival Southwestern Energy Co SWN. And Exxon Mobil Corp XOM agreed to a $60 billion deal for Pioneer Natural Resources Co PXD.

Price Action: MRO stock is trading higher by 0.87% at $29.10 premarket on the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.