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Devon Energy to buy shale-oil rival WPX Energy for $2.56 billion

September 28, 2020

(Reuters) – U.S. oil and gas producer Devon Energy Corp DVN.N said on Monday it will buy shale-oil rival WPX Energy Inc WPX.N for $2.56 billio(£1.99 billion) as it looks to boost its presence in the top U.S. oilfield.

FILE PHOTO: A WPX Energy natural gas drilling rig in Parachute, Colorado, December 10, 2014. REUTERS/Jim Urquhart

The all-stock deal comes as U.S. shale companies have posted big losses on weak crude prices amid the COVID-19 pandemic and have struggled to raise new capital to restructure debt.

But as producers seek out combinations to survive the coronavirus-induced slump in demand, deals at little or no premium are becoming the norm.

Investors cheered the deal, pushing up WPX shares 17% in Monday afternoon trading, to $5.22, while Devon rose nearly 13% to $9.94.

“Sector consolidation remains a critical focus, though we think news of a DVN/WPX combination is somewhat unexpected and could

Devon Energy to Buy Shale-Oil Rival WPX Energy for $2.56 Billion | Investing News

September 28, 2020

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(Reuters) – U.S. oil and gas producer Devon Energy Corp

said on Monday it will buy shale-oil rival WPX Energy Inc

for $2.56 billion as it looks to boost its presence in the top U.S. oilfield.

The all-stock deal comes as U.S. shale companies have posted big losses on weak crude prices amid the COVID-19 pandemic and have struggled to raise new capital to restructure debt.

But as producers seek out combinations to survive the coronavirus-induced slump in demand, deals at little or no premium are becoming the norm.

Investors cheered the deal, pushing up WPX shares 17% in Monday afternoon trading, to $5.22, while Devon rose nearly 13% to $9.94.

“Sector consolidation remains a critical focus, though we think news of a DVN/WPX combination is somewhat unexpected and could be complicated by likely shareholder votes on both sides given relatively similar market caps,” Cowen analysts said.

Devon’s deal is

Devon Energy Climbs 4% on Plan to Acquire Peer WPX

September 28, 2020

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a sign on the side of a building: A sign for Devon Energy (DVN) out front of a company office in Calgary, Canada.

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A sign for Devon Energy (DVN) out front of a company office in Calgary, Canada.

Devon Energy (NYSE:DVN) is on the move Monday after announcing it would acquire peer WPX Energy (NYSE:WPX). It has been a tough year for the oil patch, so investors are rewarding DVN stock for charting a strategic path. In short, this deal should help cut costs, boost scale and even avoid a pending political downside catalyst.

a sign on the side of the street: A sign for Devon Energy (DVN) out front of a company office in Calgary, Canada.

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A sign for Devon Energy (DVN) out front of a company office in Calgary, Canada.

This has by no means been a good year for oil and gas companies. The novel coronavirus pandemic has driven down demand, and a price war between Saudi Arabia and Russia introduced some powerful volatility to the market. Now, depressed prices, political headwinds and an electrified future continue to weigh

Devon Energy and WPX Up Sharply on Confirmation of Merger

September 28, 2020

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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

Devon Energy to buy shale peer WPX for $2.56 billion in Delaware push

September 28, 2020

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(Reuters) – U.S. oil and gas producer Devon Energy Corp <DVN.N> said on Monday it will buy Permian basin peer WPX Energy Inc <WPX.N> for $2.56 billion as it looks to scale up its presence in the Delaware portion of the prolific shale field.

The deal values WPX at $4.56 per share, just 2.7% higher than the stock’s closing price on Friday.

WPX shares surged more 12% in premarket market trading to $5, well above the per share price implied in the Devon merger, suggesting shareholders expect a higher offer.

Deals at little or no premium are becoming the norm in the oil and gas industry as producers seek out combinations to tide out a coronavirus-induced slump in demand and a crash in prices of hydrocarbons.

Devon’s deal is the second major merger in the troubled industry following the price shock in April when crude oil briefly traded in negative

Devon to Buy WPX for $2.56 Billion to Expand in Permian Shale

September 28, 2020

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(Bloomberg) — Devon Energy Corp. agreed to acquire WPX Energy Inc. in a $2.56 billion all-stock deal, creating one of the largest independent U.S. shale producers and answering investor calls for consolidation at a time of crisis for the sector.

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Devon shareholders will own about 57 percent of the combined company, Devon and WPX said Monday in a statement.

The combination will create one of the biggest independent shale producers in the country, tying together two companies with sizable operations in the hottest part of the prolific Permian Basin, which straddles West Texas and southeastern New Mexico.

U.S. shale company shareholders, frustrated after years of poor returns and missed targets, have long called for the industry to consolidate in order to cut costs, and some have advocated for low- to no-premium deals, just to get them across the finish-line. The plunge in oil prices this year, which has

Exclusive: U.S. shale producer Devon in talks to acquire peer WPX

September 27, 2020

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NEW YORK (Reuters) – U.S. shale producer Devon Energy Corp is in talks to acquire rival WPX Energy Inc in an all-stock transaction that would create a company worth around $6 billion, people familiar with the matter said on Saturday.

A pump jack operates at a well site leased by Devon Energy Production Company near Guthrie, Oklahoma September 15, 2015. REUTERS/Nick Oxford

The deal talks show how consolidation in the oil and gas industry is picking up, as low energy prices drive some independent producers to seek scale through mergers. In July, Noble Energy Inc agreed to be acquired by Chevron Corp for $5 billion in stock.

The deal, which would value Tulsa, Oklahoma-based WPX at a small premium to its current share price, could be announced as soon as next week, according to one of the sources.

The sources, who requested anonymity to discuss the private talks, cautioned that

US shale producer Devon in talks to acquire peer WPX – sources

September 27, 2020

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U.S. shale producer Devon Energy Corp is in talks to acquire rival WPX Energy Inc in an all-stock transaction that would create a company worth around $6 billion, people familiar with the matter said on Saturday.

The deal talks show how consolidation in the oil and gas industry is picking up, as low energy prices drive some independent producers to seek scale through mergers. In July, Noble Energy Inc agreed to be acquired by Chevron Corp for $5 billion in stock.

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The deal, which would value Tulsa, Oklahoma-based WPX at a small premium to its current share price, could be announced as soon as next week, according to one of the sources.

The sources, who requested anonymity to discuss the private talks, cautioned that an agreement was not