Oil & Gas Briefing - February 2, 2026

🔥 BREAKING: Devon Energy & Coterra Announce $58 Billion Merger

Devon Energy and Coterra Energy to merge in an all-stock deal valued at $58 billion, creating one of the world's leading shale producers (CNBC)
Combined company will produce over 1.6 million barrels of oil equivalent per day, establishing a dominant position in the Delaware Basin (GlobeNewswire)
Under the deal, Coterra shareholders receive 0.70 Devon shares per share held; Devon will own roughly 54% of combined company (CTV News)
Devon CEO Clay Gaspar will lead the combined company, while Coterra CEO Tom Jorden will serve as non-executive chairman of the board
Companies expect the merger to close in Q2 2026; combined entity will keep the Devon name and be headquartered in Houston with major presence in Oklahoma City
This is the largest U.S. shale tie-up since Diamondback acquired Endeavor for ~$26 billion in 2024 (Investing News)
Both Devon and Coterra shares fell in premarket trading (Devon -3%, Coterra -2.7%), tracking a 5% decline in broader oil market

Brent crude fell over 5% to ~$66/barrel, while WTI dropped to ~$62/barrel on Monday as US-Iran tensions eased (Reuters)
Trump indicated over the weekend that Iran is in "serious" discussions with Washington, calming supply disruption fears (The National)
Prices had surged in January — Brent gained 16% for the month and topped $72 at one point amid military strike concerns (OilPrice.com)
OPEC+ reaffirmed output pause for March at Sunday meeting, keeping production quotas unchanged amid market uncertainty (Reuters)
No forward guidance provided by OPEC+ — analyst Jorge Leon of Rystad Energy notes "the group is keeping all options firmly on the table" given geopolitical uncertainty
OPEC secretariat received updated compensation plans from Iraq, UAE, Kazakhstan and Oman for exceeding output targets (Reuters)

ExxonMobil and Chevron expressed tentative interest in re-engaging with Venezuela following U.S. sanctions easing via General License 46 on January 29 (Egypt Oil & Gas)
ExxonMobil CEO Darren Woods — who previously called Venezuela "uninvestable" — noted cautious optimism, saying company could leverage Canadian heavy-crude expertise
Chevron CEO Mike Wirth said company could process an additional 100,000 b/d of Venezuelan crude at Gulf and West Coast refineries, on top of current 50,000 b/d throughput
Chevron plans to increase Venezuela production by ~50% over 18-24 months, funding expansion with existing cash flow rather than new capital
Both executives emphasized long-term investments depend on durable legal frameworks and international arbitration for dispute resolution
ConocoPhillips stock soaring to start 2026 with investors eyeing Venezuela exposure (Yahoo Finance)

Chevron Q4 2025 net income dropped 12.5% to $2.84 billion, with full-year 2025 profits declining from prior year (Yahoo Finance)
Year-end proved reserves at 10.6 billion barrels of net oil equivalent, with significant additions from Hess acquisition and new Permian, Australia, and Guyana projects
Reserve replacement ratio of 158% demonstrates strong resource base growth
Company achieved $1 billion synergy target from the completed Hess acquisition
Capital expenditure rose due to investments in legacy Hess assets and U.S. data center power solutions, despite reduced downstream spending

Diamondback Energy price target raised to $218 by Piper Sandler, expecting maintenance-style programs for most oil companies in FY26 (Yahoo Finance)
Viper Energy (VNOM) highlighted as insulated from drilling cutbacks since Diamondback operates ~60% of its production; non-operated acreage led by top-tier operators including Exxon, Occidental, EOG, ConocoPhillips, and Ovintiv (CNBC)
EOG Resources price target cut from $161 to $151 by Susquehanna with "Positive" rating maintained; firm cited supply glut and softer demand, reducing 2026 WTI assumption from $65 to $60/barrel (Barchart)
Piper expects gas producers to push for growth as LNG demand picks up, while oil producers maintain capital discipline

Seeking Alpha 2026 oil outlook: With US threatening Iran with military force, expect WTI prices to range between $60-$70/barrel for February amid uncertainty (Seeking Alpha)
Mexico seeking alternate ways to supply Cuba with oil after Trump's tariff order on countries supplying the island with crude (Yahoo Finance)
India carbon capture budget of Rs 20,000 crore ($2.4B) announced, signaling growing CCUS investment globally (Indian Express)
Deadly blast in Iran's Bandar Abbas caused by gas leak amid heightened US-Iran tensions (Al Jazeera)