Updates
January 7, 2021: the merger becomes final. 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 NYSE.
Original Post
In what’s being billed as a merger of equals, Devon Energy will acquire WPX Energy in an all-stock deal that gives WPX shareholders five out of 12 board seats and .5165 Devon shares for each of theirs, amounting to 43% of “New Devon.”
With a combined capital structure involving $6 billion in debt against $6 billion in equity, and daily production volumes of roughly 525,000 barrels per day of oil (and natural gas equivalents), the new Devon will be bigger than Apache Corp and Marathon Oil, and just a notch below EOG Resources.
The deal, first rumored over the weekend, comes on the heels of Chevron’s takeover of Noble Corp., and features a popular new recipe for consolidating America’s beleaguered oilpatch — the stock-for-stock deal gives WPX just a 3% premium. In a ringing endorsement, Devon shares closed up 11% Monday, while WPX was up 16% (both issues are down by more than 2/3rds YTD).
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