Oklahoma-based Devon Energy Corp. said that it was close to a deal to acquire privately held GeoSouthern Energy Corp. for USD6 billion.
The takeover is expected to be made public as early as this week.
GeoSouthern Energy is an oil and gas company based in The Woodlands, Texas. It operates oil and gas wells in the Austin Chalk and Eagle Ford geologic formations in South Texas.
According to Reuters, the GeoSouthern buyout would be Devon's second large transaction in less than a month. The move was made as Devon sought to revive stock market investor interest in its shares.
Devon's revenue was down to USD9.5 billion, based on its latest filing with the Securities and Exchange Commission. It has a total of USD43.3 billion assets under management as of 2012.
In 2009, Devon sold off all its international and offshore assets, including assets in the Gulf of Mexico, to focus on its North American operations, Reuters said.
Late this year, the North American petroleum company agreed to merge most of its US pipeline and processing businesses with those owned by midstream energy company Crosstex Energy Inc. and Crosstex Energy LP. The deal resulted to the creation of a new infrastructure company, the report said.
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