Devon Energy and WPX Energy to Combine in a $12 Billion Merger of Equals
Devon Energy (NYSE: DVN) and WPX Energy (NYSE: WPX) have agreed to combine in an all-stock merger of equals transaction. The deal will create a leading U.S. unconventional oil producer with a dominant position in the Delaware Basin with a 400,000 net acre position. The combined company will also operate in the Anadarko Basin, Williston Basin, Eagle Ford Shale, and Powder River Basin.
Under the terms of the deal, WPX Energy shareholders will receive 0.5165 shares of Devon Energy's common stock for each WPX share they currently own. Upon completion, current Devon shareholders will own 57% of the combined company with WXP shareholders owning the other 43%. The merger of equals will create an oil company with an enterprise value of $12 billion based on their stocks' closing prices last week.
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Source Fool.com