Devon Energy Corp. and WPX Energy Inc. announced on Jan. 7 the successful completion of their previously announced all-stock merger of equals.
First announced in September 2019, the transaction creates a leading energy producer in the United States, with an asset base underpinned by a premium acreage position in the economic core of the Delaware Basin. The combined company will operate under the name Devon Energy and be headquartered in Oklahoma City.
“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,” said Dave Hager, executive chairman. “We are excited to combine our teams and we look forward to executing on our disciplined strategy to create value for all of our stakeholders.”
“I want to thank employees for their determined work to complete a transaction of this size and scale in basically just three months,” said Rick Muncrief, president and CEO. “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.
“The combined company’s advantaged assets, operating capabilities, balance sheet, and our resolve to pursue efficient, innovative ways of doing business positions Devon to deliver differentiated financial and operational results for many years to come.”
In accordance with the merger agreement, WPX shareholders received a fixed exchange of 0.5165 shares of Devon common stock for each share of WPX common stock owned. WPX common stock will no longer be listed for trading on the New York Stock Exchange.
The company’s combined new board of directors consists of 12 members:
- David A. Hager, executive chairman of the board
- Barbara M. Baumann
- John E. Bethancourt
- Ann G. Fox
- Kelt Kindick
- John Krenicki Jr.
- Karl F. Kurz
- Robert A. Mosbacher Jr.
- Richard E. Muncrief
- D. Martin Phillips
- Duane C. Radtke
- Valerie M. Williams
Devon Energy is a leading oil and gas producer in the United States with a premier multi-basin portfolio headlined by a world-class acreage position in the Delaware Basin. Devon’s disciplined cash-return business model is designed to achieve strong returns, generate free cash flow and return capital to shareholders, while focusing on safe and sustainable operations.