Devon Energy and WPX Up Sharply on Confirmation of Merger

Shares of shale producer Devon Energy  (DVN) – Get Report and rival WPX Energy  (WPX) – Get Report were rising Monday after the companies confirmed they would merge in an all-stock deal with an enterprise value of about $12 billion.

Devon Energy shares rose 4.2% to $9.19 on Monday, while WPX Energy rose 5.07% to $4.67.

The Wall Street Journal reported earlier the companies were discussing an all-stock transaction.

The merger is expected to close in the first quarter of 2021.

Upon completion of the transaction, Devon shareholders will own about 57% of the combined company and WPX shareholders will own the rest.

“This merger is a transformational event for Devon and WPX as we unite our complementary assets, operating capabilities and proven management teams to maximize our business in today’s environment, while positioning our combined company to create value for years to come,” said Dave Hager, Devon’s president and CEO, in a statement Monday.

Shares of Devon Energy have fallen about 64% over the past year, while WPX Energy has seen its stock decline about 57% as oil prices have slumped amid weaker demand during the coronavirus pandemic.

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