Report: Devon Nears $6B Deal for GeoSouthern Energy

Devon Energy (NYSE:DVN) is close to a deal to buy closely-held GeoSouthern Energy for about $6 billion, The Wall Street Journal reported Tuesday.

Citing sources familiar with the matter, the report said an agreement could be announced as soon as Wednesday.

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A Devon spokesperson declined to comment on the report. A representative of GeoSouthern wasn’t immediately available.

With a market value of $24.4 billion, Devon is one of the largest independent exploration and production firms in the U.S.

Texas-based GeoSouthern focuses on oil and gas exploration, particularly at the Eagle Ford shale play in its home state. Private-equity firm Blackstone Group (NYSE:BX) is one of GeoSouthern’s investors.

Devon shares jumped 4.9% to $62.72 in late afternoon trading. The stock has lagged behind the broader S&P 500 this year, logging a gain of 14.9% as of Monday’s close.

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