Devon Energy Acquires WPX Energy in All-Stock Transaction

Updated 8 months 1 week ago

Devon and WPX entered into an agreement in September 2020 to combine in an all-stock merger of equals transaction. The combined company will be named Devon Energy with 400,000 net acres in the Delaware Basin and annual cost savings of $575 million by year-end 2021. Dave Hager will serve as chairman of the board with Rick Muncrief becoming president and CEO.

WPX was incorporated in 2011 and completed a public offering as a spin off from Williams Companies in 2012. The company acquired RKI Exploration in 2015 and Felix Energy in March 2020.

WPX shareholders will receive 0.5165 shares of Devon common stock for each WPX share. Upon closing, Devon shareholders will own 57% of the company. The deal is expected to close in the first quarter of 2021. EnCap owns approximately 27% of WPX and has entered into a support agreement for the transaction. Following the merger, the board of directors will include seven directors from Devon and five from WPX. The executive team will include David Harris as EVP and chief corporate development officer, and the company headquarters will be in Oklahoma City, Oklahoma. J.P. Morgan acted as an advisor to Devon, and Citi advised WPX.

Devon President & CEO

Bringing together our asset bases will drive immediate synergies and enable the combined company to accelerate free cash flow growth and return of capital to shareholders. In addition to highly complementary assets, Devon and WPX have similar values, and a disciplined returns-oriented focus, reinforcing our belief that this is an ideal business combination.