Devon Energy has been approached by Stone Ridge Asset Management with an offer of approximately $8bn for its Marcellus shale assets, Reuters reported.
The approach comes after Devon Energy closed its all-stock merger worth $58bn with Coterra Energy in May, creating one of the largest independent oil and gas producers in the US.
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Stone Ridge, a New York-based investment manager with $35bn in assets under management, submitted the offer as a means to open discussions with Devon Energy regarding the Marcellus position. These assets, predominantly focused on natural gas, comprise 190,000 net acres in Pennsylvania and were previously part of Coterra Energy’s portfolio.
Devon Energy is yet to make any decision about the future of this position, according to sources, who spoke on the condition of anonymity.
The Marcellus shale package is understood to account for a significant share of Devon Energy’s production forecast. According to a company presentation in February 2026, the Marcellus was projected to provide approximately 20% of Devon Energy’s expected output of 1.6 million barrels of oil equivalent per day in 2026, second only to the Delaware Basin at 53%.
The Stone Ridge proposal reportedly involves what would be the largest asset-backed securitisation (ABS) seen in the US oil and gas sector to date, sources said, but they declined to specify the size or provide further financial details.
ABS structures in oil and gas typically pledge future production revenues as collateral, allowing acquirers to obtain lower borrowing costs to fund mature, producing assets.
Stone Ridge has previously used this approach, most recently acquiring Ovintiv’s Oklahoma assets for $3bn in April in partnership with Flywheel Energy, according to people familiar with the transaction.
There is no guarantee that Devon Energy will agree to the sale of the Marcellus assets or even formally consider the offer, sources added. They also suggested that Stone Ridge could potentially partner with another operator better equipped to manage the undeveloped acreage, should a deal progress.
Devon Energy’s management, led by CEO Clay Gaspar, stated during an earnings call on 6 May that the company is reviewing all assets following the Coterra Energy merger, with a view towards optimising its portfolio.
Gaspar said: “Every asset in the combined portfolio has to compete for its capital and earn its seat at the table.”
He added that Devon Energy would act quickly to seize opportunities that could enhance shareholder value, and that a full review against strategic and financial criteria is under way.
Devon Energy has also faced public calls from investment firm Kimmeridge to consider asset sales and focus capital on its highest-return acreage. In April, Kimmeridge argued that Devon Energy risks being valued at a “conglomerate discount” unless it streamlines its structure.
Meanwhile, Devon Energy recently expanded its holding in the Delaware Basin, spending $2.6bn at a federal land auction to acquire 16,300 net undeveloped acres in New Mexico’s Lea and Eddy Counties, further strengthening its Permian presence.
The Delaware remains the core contributor to Devon Energy’s projected output, underlining the company’s stated strategic focus following the merger. Devon Energy’s combined operations are now based in Houston, Texas, with a significant ongoing presence in Oklahoma City, as the group continues to integrate assets inherited from both predecessor companies.
