Plus   Neg

Devon Energy, WPX Energy Announce Merger Of Equals - Quick Facts

Devon Energy (DVN) and WPX Energy (WPX) have agreed to combine in an all-stock merger of equals transaction creating one of the largest unconventional oil producers in the U.S. with production of 277,000 barrels per day. WPX shareholders will receive a fixed
exchange ratio of 0.5165 shares of Devon common stock for each share of WPX common stock owned. This results in an enterprise value for the combined entity of approximately $12 billion. Devon shareholders will own approximately 57 percent and WPX shareholders will own approximately 43 percent of the combined company.

The combined company, named Devon Energy, will be headquartered in Oklahoma City. Dave Hager will be appointed executive chairman of the board, and Rick Muncrief will be named president and CEO. The combined company's executive team will include Jeff Ritenour as executive vice president and chief financial officer, Clay Gaspar as executive vice president and chief operating officer.

Devon is also initiating a new dividend strategy that pays a fixed dividend and evaluates a variable distribution on a quarterly basis. The enhanced dividend strategy is effective immediately upon close of the transaction. The deal is also anticipated
to be immediately accretive to all relevant per-share metrics in the first year, including: earnings, cash flow, free cash flow, and net asset value.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
The U.S. Food and Drug Administration (FDA) has gone ahead with the approval of antiviral drug remdesivir as first treatment for COVID-19, notwithstanding last week's findings by the World Health Organization (WHO) that the drug is not effective for COVID-19 treatment. Thursday, Gilead Sciences announced that the FDA approved remdesivir, sold under the brand name Veklury. Integrated payments firm American Express Co. (AXP) reported Friday that net income for the third quarter declined to $1.1 billion or $1.30 per share from $1.8 billion or $2.08 per share in the prior-year quarter. Consolidated total revenues, net of interest expense, also decreased 20 percent to $8.8... The Federal Trade Commission or FTC has launched a new fraud reporting platform, using which, consumers can easily report fraud and all other consumer issues directly to the regulator. In a statement, the FTC said its new website, ReportFraud.ftc.gov, will provide a streamlined and user-friendly way to submit reports about scams, frauds, and bad business practices.
Follow RTT