The US oil and gas producer Devon Energy will buy its rival WPX Energy for US$2.6bn as it intends to create a leading unconventional oil producer in the United States. Upon completion of the transaction, which has been approved by the boards of both companies and is expected to close in early 2021, Devon shareholders will own approximately 57% of the combined company and WPX shareholders will own approximately 43% of the combined company on a fully diluted basis.
The transaction will create one of the largest unconventional oil producers in the United States with a combined production of 277,000 bbl/d. The combined company will benefit from a premier multi-basin portfolio, with a world-class acreage position in the Delaware Basin that accounts for nearly 60% of the combined company’s total oil production. The group will also be active in high-margin resource plays in the Anadarko Basin, Williston Basin, Eagle Ford Shale and Powder River Basin.