The merger of Oklahoma City’s Devon Energy Corporation and Tulsa’s WPX Energy, Inc. was approved by shareholders of both companies this week.
An announcement by the two firms indicated the merger is anticipated to close on Jan. 7, 2021 after shareholders voted in favor of all proposals necessary for the closing of the previously announced all-stock merger of the companies.
““Together, we’ll be one of the strongest oil producers in the U.S.,” said Rick Muncrief, WPX’s chairman and CEO after the votes.
The approval resulted in bounces for both companies in stock trading. Devon Energy saw a gain of 5.42% or 83 cents a share and finished the day at $16.14.
WPX jumped nearly 6% on a 47 cent increase to end the day at $8.35 per share.
Devon shareholders in a special meeting on Wednesday voted and more than 70% of the shares of the company’s common stock were represented. Devon indicated more than 99% of the votes cast supported the merger.
WPX shareholders held their own special meeting where 87% of the shares of common stock were represented and like Devon, more than 99% voted n support of the merger.
“This is an important milestone as we move toward uniting our complementary assets to create a leading U.S. energy company, with a focus on accelerating free cash flow growth and the return of capital to shareholders,” said Dave Hager, Devon’s president and CEO.
“Today’s overwhelmingly positive support from both Devon and WPX stockholders reflects what an outstanding opportunity this is to maximize our businesses, drive synergies and accomplish our objectives for shareholders,” added Muncrief at WPX.
Devon and WPX will each file the final vote results for their respective special meetings on a Form 8-K with the U.S. Securities and Exchange Commission (the “SEC”).
Under the terms of the merger agreement, WPX shareholders will receive a fixed exchange ratio of 0.5165 shares of Devon common stock for each share of WPX common stock owned.
Source: WPX Energy release