$21.5 billion merger will create Houston-based energy powerhouse

Major Merger

Devon Energy will buy Houston-based Coterra Energy. Photo via Coterra Energy

Oklahoma City, Oklahoma-based Devon Energy has agreed to buy Houston-based Coterra Energy in a $21.5 billion all-stock deal, forming an energy powerhouse that will be headquartered in Houston. The combined company, boasting an enterprise value of $58 billion, will adopt the Devon brand name.

Revenue for the two publicly traded companies totaled nearly $18.8 billion in the first nine months of 2025. Devon is a Fortune 500 company, but Coterra doesn’t appear in the most recent ranking.

The deal, already approved by the boards of both companies, is expected to close in the second quarter of 2026. Once the transaction is completed, Devon shareholders will own about 54 percent of the combined company and Coterra shareholders will own 46 percent.

“This transformative merger combines two companies with proud histories and cultures of operational excellence, creating a premier shale operator,” says Clay Gaspar, Devon’s president and CEO.

The combined company will be one of the world’s largest shale producers, with third-quarter 2025 production exceeding 550 thousand barrels of oil per day and 4.3 billion cubic feet of gas per day. A significant presence in the Delaware Basin, encompassing hundreds of thousands of acres, will anchor the company’s operations. The 10,000-square-mile Delaware Basin is in West Texas and southeastern New Mexico.

The new Devon also will operate in the Permian Basin, located in West Texas and New Mexico; Marcellus Shale, located in five states in the East; and Anadarko Basin, located in the Texas Panhandle, Colorado, Kansas, and Oklahoma.

Gaspar will be president and CEO of the combined company, and Tom Jorden, chairman, president, and CEO of Coterra, will be non-executive chairman.

The deal brings Fervo's total funding secured this year to around $600 million. Photo courtesy of Fervo

Houston-based Fervo Energy collects $255M in additional funding

cha-ching

A Houston company that's responding to rising energy demand by harnessing geothermal energy through its technology has again secured millions in funding. The deal brings Fervo's total funding secured this year to around $600 million.

Fervo Energy announced that it has raised $255 million in new funding and capital availability. The $135 million corporate equity round was led by Capricorn’s Technology Impact Fund II with participating investors including Breakthrough Energy Ventures, CalSTRS, Congruent Ventures, CPP Investments, DCVC, Devon Energy, Galvanize Climate Solutions, Liberty Mutual Investments, Mercuria, and Sabanci Climate Ventures.

The funding will go toward supporting Fervo's ongoing and future geothermal projects.

“The demand for 24/7 carbon-free energy is at an all-time high, and Fervo is one of the only companies building large projects that will come online before the end of the decade,” Fervo CEO and Co-Founder Tim Latimer says in a news release. “Investors recognize that Fervo’s ability to get to scale quickly is vital in an evolving market that is seeing unprecedented energy demand from AI and other sources.”

Additionally, Fervo secured a $120 million letter of credit and term loan facility from Mercuria, an independent energy and commodity group that previously invested in the company.

“In surveying power markets across the U.S. today, the need for next-generation geothermal is undeniable,” Brian Falik, group chief investment officer of Mercuria, adds. “We believe in Fervo not just because their EGS approach is cost-effective, commercially viable, and already being deployed at scale, but because they set ambitious targets and consistently deliver.”

In February, Fervo secured $244 million in a financing round led by Devon Energy, and in September, the company received a $100 million bridge loan for the first phase of its ongoing project in Utah. This project, known as Project Cape, represents a 100x growth opportunity for Fervo, as Latimer explained to InnovationMap earlier this year. As of now, Project Cape is fully permitted up to 2 GW and will begin generating electricity in 2026, per the company.

Other wins for Fervo this year include moving into its new headquarters in downtown Houston, securing a power purchase agreement with California, growing its partnership with Google, and being named amongst the year's top inventions by Time magazine.

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This article originally ran on InnovationMap.

Fervo Energy went from a 5,158-square-foot space to a 23,782-square-foot office in downtown Houston. Photo via Hines

Houston geothermal energy startup grows local office presence

report

On the heels of landing more than $240 million in venture capital, Houston-based geothermal power provider Fervo Energy has more than quadrupled the size of its headquarters.

Fervo previously occupied 5,158 square feet at 114 Main St. in downtown Houston. The company recently left the Main Street space and leased 23,782 square feet at downtown Houston’s 910 Louisiana office tower. Houston-based commercial real estate company Hines owns and manages the 50-story former One Shell Plaza.

“We believe Houston is the center of the energy transition, and downtown Houston has long been its center of activity,” Tim Latimer, co-founder and CEO of Fervo Energy, says in a news release. “The availability of dining options, parks, and biking infrastructure continue to be great assets and a huge draw for our team. For these reasons and more, the only place for Fervo’s headquarters is downtown Houston.”

In February 2024, Fervo announced it had raised $244 million in an investment round led by Oklahoma City, Oklahoma-based hydrocarbon exploration company Devon Energy. Fervo has collected $431 million in funding since its founding in 2017.

Energy companies like Fervo occupy about 43 percent of office space in downtown Houston, according to a new report from the Downtown Houston+ organization. Nineteen new tenants set up shop last year in downtown Houston, with 10 of them operating in the energy sector.

Other energy companies that recently leased office space in downtown Houston include:

AES Clean Energy
Axip Energy Services
EnLink Midstream
MRC Global
Repsol Renewables
Stonepeak

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This article originally ran on InnovationMap.

Devon Energy reports that the deal significantly expands its position in the Williston Basin with the addition of 307,000 net acres. Photo via Getty Images

Devon Energy to acquire Houston exploration, production biz in $5B deal

M&A moves

Devon Energy is buying Grayson Mill Energy's Williston Basin business in a cash-and-stock deal valued at $5 billion as consolidation in the oil and gas sector ramps up.

The transaction includes $3.25 billion in cash and $1.75 billion in stock.

Grayson Mill Energy, based in Houston, is an oil and gas exploration company that received an initial investment from private equity firm EnCap Investments in 2016.

The firm appears to be stepping back from energy sector as it sells off assets. Last month EnCap-backed XCL Resources sold its Uinta Basin oil and gas assets to SM Energy Co. and Northern Oil and Gas in a transaction totaling $2.55 billion. EnCap had another deal in June as well, selling some assets to Matador Resources for nearly $2 billion.

Devon said Monday that the deal significantly expands its position in the Williston Basin with the addition of 307,000 net acres. The basin spans parts of Montana, North Dakota, South Dakota and Canada.

The company anticipates that production from the acquired properties will be maintained at approximately 100,000 barrels of oil equivalent per day next year.

The deal is targeted to close by the end of the third quarter.

Devon said its board will expand its buyback authorization by 67 percent to $5 billion through the middle of 2026. The company also anticipates the deal adding to its dividend payout beginning next year.

Shares of Devon Energy Corp., based in Oklahoma City, fell more than 2.5 percent Monday.

In March, Devon Energy led Houston-based geothermal startup Fervo Energy's $244 million funding round.

Fervo Energy scored a $244 million round of funding thanks to existing and new investors. Photo via Fervo Energy

Devon Energy leads Houston geothermal startup's $244M funding round

ready to dig

An Oklahoma-based shale oil and gas leader has backed Fervo Energy's latest round of funding, supporting the startup's geothermal technology yet again.

Fervo announced its latest round of funding this week to the tune of $244 million. The round was led by Devon Energy, a company that's previously backed the startup.

“Demand for around-the-clock clean energy has never been higher, and next-generation geothermal is uniquely positioned to meet this demand,” Tim Latimer, Fervo CEO and co-founder, says in a news release. “Our technology is fully derisked, our pricing is already competitive, and our resource pipeline is vast. This investment enables Fervo to continue to position geothermal at the heart of 24/7 carbon-free energy production.”

Founded in 2017, Fervo provides carbon-free energy through development of next-generation geothermal power. The company has recently reported its success at its Cape Station project, a400 MW project in Beaver County, Utah, as well as at its full-scale commercial pilot, Project Red, in northern Nevada and made possible through a 2021 partnership with Google.

Galvanize Climate Solutions, John Arnold, Liberty Mutual Investments, Marunouchi Innovation Partners, Mercuria, and Mitsubishi Heavy Industries also contributed to the round with existing investors Capricorn’s Technology Impact Fund, Congruent Ventures, DCVC, Elemental Excelerator, Helmerich & Payne, and Impact Science Ventures.

“The energy trilemma is one of the defining global challenges of our time; how can we generate power that is affordable, reliable, and clean,” Houstonian John Arnold, founder of Centaurus Capital and co-chair of Arnold Ventures, says in the release. “Fervo has transformed geothermal into a scalable carbon-free resource ready to meet the moment.”

The fresh funding, according to the company, will go toward Fervo’s work in Cape Station, that is slated to begin delivering clean electricity to the grid in 2026.

“Fervo’s approach to geothermal development leverages leading-edge subsurface, drilling, and completions expertise and techniques Devon has been honing for decades,” David Harris, chief corporate development officer and executive vice president at Devon, says in the release. “We look forward to deepening our partnership with Fervo to capture the full value of Fervo’s first-mover advantage in geothermal and the adjacencies to Devon’s core business.”

In 2022, Fervo raised a $138 million series C round to support the completion of power plants in Nevada and Utah and evaluate new projects in California, Idaho, Oregon, Colorado, and New Mexico, as well as in other countries. This latest investment brings the company's total funds raised to $431 million since its inception in 2017, according to Crunchbase.

Fervo Energy says its drilling operations Utah’s Cape Station show a 70 percent reduction in drilling times, paving the way for advancement of its geothermal energy system. Photo via fervoenergy.com

Houston geothermal startup reports 'dramatic acceleration' of drilling operations at Utah project

optimization station

Early drilling results indicate a geothermal energy project operated in Utah by Houston-based startup Fervo Energy is performing better than expected.

Fervo says its drilling operations Utah’s Cape Station show a 70 percent reduction in drilling times, paving the way for advancement of its geothermal energy system. Fervo began construction last year on Cape Station, which is set to deliver clean power to the grid in 2026 and be fully operating by 2028.

The company recently published early drilling results from Cape Station that it says exceed the U.S. Department of Energy’s expectations for enhanced geothermal systems. Fervo says these results “substantiate the rapid learning underway in the geothermal industry and signal readiness for continued commercialization.”

Founded in 2017, Fervo provides carbon-free energy through development of next-generation geothermal power.

Fervo began drilling at Cape Station, a 400-megawatt project in southwest Utah, in June 2023. Over the past six months, the company has drilled one vertical well and six horizontal wells there. The company reports that costs for the first four horizontal wells at Cape Station fell from $9.4 million to $4.8 million per well.

“Since its inception, Fervo has looked to bring a manufacturing mentality to enhanced geothermal development, building a highly repeatable drilling process that allows for continuous improvement and, as a result, lower costs,” Tim Latimer, Fervo’s co-founder and CEO, says in a news release. “In just six months, we have proven that our technology solutions have led to a dramatic acceleration in forecasted drilling performance.”

Trey Lowe, chief technology officer of Oklahoma City-based oil and gas producer Devon Energy, likens Fervo’s drilling results to “the early days of the shale revolution.” Last year, Devon invested $10 million in Fervo.

“When you operate continually and understand the resource, you dramatically streamline operations. That’s the unique value of Fervo’s approach to enhanced geothermal,” says Lowe.

Last summer, Fervo reported the results of another one of its projects, Project Red, which is in northern Nevada and made possible through a 2021 partnership with Google. That site officially went online for the tech company in December.

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5+ must-attend Houston energy events in March: CERAWeek and more

Mark Your Calendar

Editor's note: March is a major month for energy industry events in Houston, including CERAWeek and more must-attend summits and forums. Mark your calendars for the top events of the month, and register now.

March 2-4 — The Future Energy Summit

The Future Energy Summit is a premier global event bringing together visionaries, industry leaders, and energy experts to shape the future of energy. The second edition of the conference will provide a platform for groundbreaking discussions, cutting-edge technologies, and transformative strategies that will accelerate the energy transition.

This event begins March 2. Register here.

March 5 — 2026 Houston CISO Forum

The Energy Conference Network hosts an exclusive, executive-level cybersecurity leadership event for those in the energy industry. The 50-person, half-day forum will bring together chief information security officers, senior cybersecurity leaders, and industry experts for candid conversations, actionable insights, and peer collaboration.

This event takes place March 5 at Hyatt Regency Houston West. Limited registration available here.

March 10-12 — World Hydrogen & Carbon Americas

S&P Global Energy brings together two leading events — Carbon Management Americas and World Hydrogen North America — to form a new must-attend event for those in the hydrogen and carbon industries. More than 800 senior leaders from across the energy value chain will attend this event featuring immersive roundtable discussions, hands-on training, real-world case studies, and unparalleled networking opportunities.

This event begins March 10 at Marriott Marquis Houston. Register here.

March 23-27 — CERAWeek 2026

CERAWeek 2026 will focus on "Convergence and Competition: Energy, Technology and Geopolitics." The industry's foremost thought leaders will convene in Houston to cultivate relationships and exchange transformative ideas during the annual event. CERAWeek 2026 will explore breakthroughs, cross-industry connections, and powerful partnerships that are accelerating the transformation of the global energy system. 2026 highlights include an appearance by tech magnate Bill Gates.

This event begins March 23. Register here.

March 24-25 — 2026 Energy Venture Day and Pitch Competition

The Energy Venture Day and Pitch Competition, co-hosted by the Rice Alliance, Ion, HETI, and TEX-E, offers two days of exciting pitches from more than 40 global energy ventures that are transforming the industry. On Tuesday, March 24, you can attend a fast-paced pitch preview event at the Ion, followed by the official Pitch Competition at 1 pm on Wednesday, March 25, at George R. Brown Convention Center.

More details available here.

How this Houston expert helps startups turn AI hype into real impact

now streaming

Artificial intelligence is now everywhere. It is mentioned in every startup pitch deck, and every corporate roadmap claims to use it. However, many early-stage businesses struggle with the simple question, “What does AI actually mean for my business?”

In a recent podcast episode of EnergyTech Startups, Merab Momen, founder of AI CTO Services and a long time AI practitioner, explains why most founders misunderstand AI, how startups can practically apply it and why Houston is quietly becoming a serious hub for AI-driven innovation.

Filling the AI Leadership Gap

Merab’s career has spanned decades of technology transitions. He worked on neutral networks in the 1990s, constructed computer vision systems long before they were common, and helped install AI solutions inside huge industrial companies. However, he noticed a huge problem when generative AI started to explode into the mainstream-The requirement of a real partner by the founders for AI integration but inability to rely on a full-time CTO and project-based consultants.

“I really needed something which is much more engaging where I can give that partner-level advice to the founders,” he said. By giving firms on-demand access to high-level AI knowledge and expertise, his methodology enables them to analyse tools, steer clear of cost blunders and eventually transition to a permanent technology leader when the time is right.

AI is Older than Most People Think

Despite its recent rise in popularity, AI is nothing new. AI actually began in the 1950s. Merab in his conversation explained how he worked on his first AI project back in the year 1996 that worked perfectly, but the processing power wasn’t just there to make it practical. He continued how he utilized the swarm intelligence models to optimize supply chains, now referred to as MLPOs and data engineering.

From Language Models to Physical World

Much of the public conversation about AI revolves around chatbots and text generation. But Merab sees far greater potential in AI’s interaction with the physical world, especially in industrial settings. He emphasized edge computing and vision language models (VLMs) as significant advances in manufacturing and energy. This physical shift is opening doors for new opportunities for robotics, automated inspections, and industrial safety applications. Merab added that Houston is uniquely positioned for this transition.

Why Houston has an AI Advantage

Silicon Valley may dominate the AI headlines, but Merab believes Houston’s advantage lies beneath the surface. The city doesn’t lag in AI utilization; it just operates in industries where results show differently.

Machine learning isn’t new to Houston’s core industries. Energy companies, manufacturers, logistics providers, and healthcare systems have been using advanced analytics for decades. The difference lies in them innovating in industrial sectors rather than consumer technology.

What’s Next

With the AI CTO Services growing, Merab is working with startups across industries to deploy AI in practical, business-first ways.

He is more interested in assisting founders in finding answers to critical issues than following new trends.

For Houston’s energy and climate tech community, it needs to transform AI enthusiasm into real-world impact.

Listen to the full conversation with Mehrab Momin on the Energy Tech Startups Podcast to learn more.

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Energy Tech Startups Podcast is hosted by Jason Ethier and Nada Ahmed. It delves into Houston's pivotal role in the energy transition, spotlighting entrepreneurs and industry leaders shaping a low-carbon future.

Houston company tapped to run renewables project with Meta power agreement

power deal

Houston-based Consolidated Asset Management Services (CAMS) has been selected to operate Plano-based Nexus Renewable Power's major renewables development, known as Project Goody.

CAMS will provide comprehensive asset management, operations, maintenance, regulatory compliance and remote operations services for the $220 million solar and battery storage project located in Lamar County, Texas, northeast of Dallas.

“The project underscores CAMS’ commitment to supporting dependable, grid-strengthening energy infrastructure across the United States,” Brian Ivany, EVP of CAMS Renewables, said in a news release. “Our team is proud to support Nexus and excited to apply our subject matter expertise and hands-on approach to ensure operational excellence and long-term success of the Goody project.”

Project Goody, or MRG Goody Solar and Storage, will feature a 172-megawatt solar facility paired with 237 megawatts of battery energy storage. The project will be connected to the ERCOT grid. Meta, the parent company of Facebook, has signed on as the power offtaker for the project.

Nexus Renewable Power develops, finances and operates solar and energy storage assets. It currently operates projects generating 325 megawatts of solar and 350 megawatts of battery storage, with another 300 megawatts of solar and 1 gigawatt of battery storage projects under construction, according to its website. Project Goody is the first in a series of renewable developments underway, according to Nexus.

CAMS manages and operates energy infrastructure assets for its clients. Last year, it added InfraRed Capital Partners, which owns the 202-megawatt Mesteño Wind Project in the Rio Grande Valley, to its customer list. It also rolled out services to help deliver power to meet the growing demand from AI data centers.

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