Devon and WPX Merge
Calling it a “merger of equals,” Oklahoma City-based Devon Energy Corp. (NYSE: DVN) and Tulsa-based WPX Energy, Inc. (NYSE: WPX) reported Thursday that they have completed their all-stock combination.
Under the deal, WPX shareholders received 0.5165 shares of Devon common stock for each WPX common stock share owned. Devon and WPX shareholders approved the transaction on Dec. 30, 2020, and the Oklahoma City-based combined company will operate using the name Devon Energy. Devon pointed out Thursday that WPX common stock will no longer be listed for trading on the New York Stock Exchange.
“This transformational merger enhances the scale of our operations, builds a dominant position in the Delaware Basin and accelerates our cash-return business model that prioritizes free cash flow generation and the return of capital to shareholders,” Dave Hager, Devon executive board chairman, remarked in a written statement. “We our excited to combine our teams and we look forward to executing our disciplined strategy to create value for all of our stakeholders.”
When Bloomberg reported the acquisition last September, it stated the deal will help to offset Devon’s exposure to federal onshore acreage given President-elect Biden’s pledge to ban new hydraulic fracturing activity on federal land. Devon’s website states the company’s operations encompass the Delaware, Anadarko, Powder River and Williston basins as well as the Eagle Ford shale formation.
“I want to thank employees for their determined work to complete a transaction of this size and scale in basically just three months,” commented Devon President and CEO Rick Muncrief. “This paves the way for our integration to pick up even more steam and establishes Devon as one of the strongest energy producers in the U.S.”
Devon stated that, in addition to Hager and Muncrief, members of the combined company’s new board include:
- Barbara M. Baumann
- John E. Bethancourt
- Ann G. Fox
- Kelt Kindick
- John Krenicki Jr.
- Karl F. Kurz
- Robert A. Mosbacher Jr.
- D. Martin Phillips
- Duane C. Radtke
- Valerie M. Williams.
According to a Nov. 6, 2020, Bloomberg article posted to Rigzone, investor pressure contributed to WPX’s decision to be acquired by Devon – at a much lower takeover premium – instead of another suitor.
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