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

(RTTNews) - 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.