Devon, WPX Shareholders Approve Tie-up

Shareholders at US shale companies Devon Energy and WPX Energy have approved an all-stock merger, the firms announced on December 30, noting that the transaction was on track to be closed on January 7.

Investors representing more than 70% of common stock in Devon met on December 30, with over 99% voting in favour of the tie-up, while shareholders holding over 87% of stock in WPX voted 99% in support of the deal.

"We are pleased with the strong support we received from both companies’ shareholders," Devon CEO Dave Hager said. "This is an important milestone as we move toward uniting our complementary assets to create a leading US energy company, with a focus on accelerating free cash flow growth and the return of capital to shareholders."

“Today’s overwhelmingly positive support from both Devon and WPX stockholders reflects what an outstanding opportunity this is to maximise our businesses, drive synergies and accomplish our objectives for shareholders,” said Rick Muncrief, WPX’s chairman and CEO. "Together, we’ll be one of the strongest oil producers in the US, differentiated by our unwavering focus on profitable, per-share growth and commitment to deliver top-tier ESG performance."

Under the transaction, agreed in September, WPX shareholders will receive 0.5165 shares of Devon for each of their own. Devon shareholders will control around 57% of the combined company, which will also be named Devon Energy and will have an enterprise value of roughly $12bn. The tie-up will create one of the biggest US unconventional producers, with an output of around 535,000 barrels of oil equivalent/day.