Coterra Said to Weigh Combination With Devon in Oil Megadeal (3)

Coterra Energy Inc. is exploring a combination with Devon Energy Corp., according to people familiar with the matter, a potential tie-up between two shale explorers that would be among the biggest oil and gas deals in years.

The companies — both with large positions in the oil-rich Permian Basin — are holding talks about a possible merger, said the people, who asked to not be identified because the matter is private. One option being discussed is an all-stock transaction, they said.

Shares in Coterra rose as much as 12% on Thursday. The stock was up 1.5% to $25.75 at ...