After last week’s announced merger of Devon Energy and Coterra Energy and the decision to move Devon headquarters to Houston, Coterra’s leader explained the decision will allow the newly-formed firm take advantage of its natural gas production. But he also pointed out how the nation is in desperate need of more pipeline transportation of natural gas.
Tom Jorden, Chairman, Chief Executive Officer and President of Coterra, was interviewed by Jim Cramer of the CNBC show “Mad Money.”
A script of the show was provided this week in a Securities and Exchange Commission filing as Jorden emphasized the need for natural gas to power data centers across the nation.
“Top of the stack, Jim. You know, we all, it’s not one source of energy is not in competition with another. And they all have different attributes. But when it comes to things like electrical power generation, particularly for data centers that need to run 24/7, that energy needs to be reliable and dispatchable. And by
that, I mean, regardless of weather, it needs to be able to generate electricity on demand under all conditions. And natural gas is a clear winner, in that set of criteria.”
But he also explained the challenge for natural gas is the construction of more natural gas pipelines across the nation
“We need infrastructure. You know, if you look at the amount of pipelines that have been built in the United States over the last 20 or 30 years, it’s criminally low compared to the increase in production. So, you know, hopefully, some people in Washington are hearing that, some people in states are hearing that. We’re ready as an industry to supply the gas. We need very productive, efficient pathways to get it to our customers.”
Below is the entire transcript.
The following transcript is an excerpt of an interview given by Tom Jorden, Chairman, Chief Executive Officer and President of Coterra, to CNBC on February
6, 2026:
Jim Cramer – host of Mad Money
Earlier this week we learned that Devon Energy is merging with Coterra in an all stock deal worth about 21.5 billion. That would make the combined company the fourth largest independent energy producer in America. It’ll be one of the largest operators in the Delaware Basin. That’s an oil rich region of the Permian
that we like so much. This is a very big deal. So let’s take a close look with Tom Jorden. He’s the Chairman, President, and CEO of Coterra to learn more about what’s happening here. Mr. Jorden, welcome back to Mad Money.
Tom Jorden – Chairman, Chief Executive Of icer, & President of Coterra Energy
Hi, Jim. Thanks for having me.
Jim Cramer – host of Mad Money
All right, so tell me, Tom, why do you have to do it? Because, you know, you’ve been running the company, you got a merged company with Cabot. Been going along okay. Why now? Why do this?
Tom Jorden – Chairman, Chief Executive Officer, & President of Coterra Energy
Well, look, both companies are doing exceedingly well. We’ve always had great respect for Devon, their assets, their people, their organization, and I think it’s been mutual. And Jim, this is a story that kind of tells itself. When you look at the overlap of the assets, the diversity that we’ll have of revenue, and also the
strength of both organizations, it really is a story that tells itself. This will be one of the strongest companies in our sector, very well positioned and built to compete with a whole new class of peer companies.
Jim Cramer – host of Mad Money
So you’ve got, uh… it looks like you’ll be top. Let’s say top one, top two or three, Anadarko, Eagle Ford, Marcellus, Rockies, and, of course, we’ve got the Permian. What’s the plan? Will you keep all those areas, or is it time just to really focus on the Permian, which is terrific?
Tom Jorden – Chairman, Chief Executive Of icer, & President of Coterra Energy
Well, first, let me tell you that Clay Gaspar will be CEO. I’ll be Chairman of the board, so, certainly, Clay’s the one that carries this torch, but, you know, at the very beginning, we’re going to need to go through just a portfolio optimization, and that can mean a number of things, including looking at capital allocation,
looking at, do we have the right assets? I mean, all of that’s work to be done, then we need to get our new board together. We need to have conversations. But, you know, Clay’s the right person for the job, and he’ll do a fantastic job, just getting this company on its feet day one.
Jim Cramer – host of Mad Money
Okay, so tell me where things are in the industry. I mention that because I’ve been spending an awful lot of time with the people who run these big data centers and the MAG-7, and it’s very clear as much as they would like very much, very much, to be able to make it so they can make it all with nuclear. Make it all with solar. Make it all with wind, make it all with hydro. It’s really natural gas, and they just don’t like to talk about it, but it’s true. Where do you think natural gas is in the pecking order in this country of energy?
Tom Jorden – Chairman, Chief Executive Of icer, & President of Coterra Energy
Top of the stack, Jim. You know, we all, it’s not one source of energy is not in competition with another. And they all have different attributes. But when it comes to things like electrical power generation, particularly for data centers that need to run 24/7, that energy needs to be reliable and dispatchable. And by
that, I mean, regardless of weather, it needs to be able to generate electricity on demand under all conditions. And natural gas is a clear winner, in that set of criteria. And then one other thing I’ll say about the new company, Jim, a lot of these counterparties are looking for very healthy investment grade suppliers, and we announced on Monday that all three credit rating agencies have us on positive watch. And with our balance sheet and our financial wherewithal, we are really sitting in a good position to satisfy that demand with counterparties that want investment grade counterparties.
Jim Cramer – host of Mad Money
Well, I actually thought, thought of you when, I know that some of these companies are looking to buy. They’re literally looking to buy a natural gas company, but I think now you’re too large, and you’re able to dictate some good terms versus some of the smaller guys.
Tom Jorden – Chairman, Chief Executive Of icer, & President of Coterra Energy
Well, it’s going to be a powerful company. We’re putting this company together to compete. It’s going to be something that will be a force to be reckoned with. You know, Jim, you know our industry well. In many respects, companies like ours are technology companies that happen to produce oil and gas. The amount of technology that we throw at these problems is just stunning, and the advancements we’ve made, and that’s the beauty of this combination, because not only do our assets overlap, but both companies have taken different approaches and solved different problems, technology wise, and bringing them together is going to be a powerful leveraging combination. Both teams are excited about this, and this company is going to be built to compete.
Jim Cramer – host of Mad Money
Hey, tell me about natural gas in general. What the heck happened that we could still, as a major country, and the biggest natural gas country in the world, still have a natural gas spike on a cold snap, go to five, six dollars, get everybody worried. What is it about the system that made that happen?
Tom Jorden – Chairman, Chief Executive Of icer, & President of Coterra Energy
Well, we need more infrastructure, Jim. There’s still bottlenecks, and you have disconnects between our ability to move the product to the customer based on where the demand is. And, you know, in some sense, we’re a broken record here, but, you know, it’s a record that needs to be heard. We need infrastructure. You
know, if you look at the amount of pipelines that have been built in the United States over the last 20 or 30 years, it’s criminally low compared to the increase in production. So, you know, hopefully, some people in Washington are hearing that, some people in states are hearing that. We’re ready as an industry to supply
the gas. We need very productive, efficient pathways to get it to our customers.
Jim Cramer – host of Mad Money
Are you willing? I just got a minute left. I don’t know whether, I hope I still get to interview you, but are you willing to go to Washington and tell that story? Because we need someone who’s level-headed and understands the environment, is not trying to do anything that’s cowboy, or whatever. To explain how natural gas really is great, and how we just need more infrastructure, making so that we’re a much stronger country.
Tom Jorden – Chairman, Chief Executive Of icer, & President of Coterra Energy
Well, it’s an honor to be able to represent our industry in any venue where there are reasonable people that want to engage in conversation. We love engaging with our critics, because we think we’ve got a persuasive argument, and our industry is going to be there to supply, you know, put America in a catbird seat in a
global competition.
Jim Cramer – host of Mad Money
Well, look, I want to congratulate you for all the great things that you’ve done. You’ve been an amazing steward of shareholders, and when it came to the idea, that, look, you gotta combine, do well for the shareholders, even better than you’re doing. You went and did it. You didn’t have to. Could have stayed independent. Right? Could have stayed independent, but you chose not to.
Tom Jorden – Chairman, Chief Executive Of icer, & President of Coterra Energy
Look, it’s the right move for our shareholders. It’s the right move for our company, and, uh, you know, I’ll just say it one more time. Clay’s the right leader for this organization. So I’ll be honored to be Chairman of the board, highly engaged, but from a board standpoint, Clay will be running the company.
Jim Cramer – host of Mad Money
Fair enough. Tom Jorden, uh, terrific guy, but I hope to get to see you again, sir, because you’ve been such a great person to come on the show. CEO and Chairman of Coterra Energy, soon to be Chairman of the new Devon. Thank you so much.
Tom Jorden – Chairman, Chief Executive Of icer, & President of Coterra Energy
Thank you, Jim.