US shale producer Devon Energy completes merger with WPX Energy

US-based Devon Energy has completed its previously announced all-stock merger of equals with WPX Energy, creating a leading energy producer in the country.

The transaction closed around a week after the shareholders of both companies approved the merger with a clear majority.

As agreed, WPX shareholders received a fixed exchange of 0.5165 shares of Devon common stock for each share.

The combined company will operate under the name Devon Energy with its headquarters in Oklahoma City.

Devon Energy executive chairman Dave Hager said: “This transformational merger enhances the scale of our operations, builds a dominant position in the Delaware Basin and accelerates our cash-return business model that prioritises free cash flow generation and the return of capital to shareholders.

“We are excited to combine our teams and we look forward to executing on our disciplined strategy to create value for all of our stakeholders.”

The companies entered an agreement in September last year to combine their operations.

At the time of the announcement, Devon Energy said that the combined entity will be valued at around $12bn, based on exchange ratio and closing prices of the shares.

Devon shareholders will own around a 57% stake in the combined company, while WPX shareholders will hold the remaining 43% interest.