Leaders of Devon Energy and WPX Energy have filed a joint proxy statement with the SEC as the two Oklahoma energy companies prepare for their announced merger.
The proxy filing did not set a date nor time for a shareholders meeting of each company. The meetings will be virtual because of the COVID-19 pandemic.
Boards of directors of the two companies are urging shareholders to vote for approval of the merger that was announced in late September.
The proxy filing made by Devon CEO David Hager and WPX CEO Richard E. Muncrief, stated that in the merger, WPX stockholders will be entitled to receive in exchange for each share of WPX common stock 0.5165 shares of Devon common stock.
The filing also indicated that while the number of shares of Devon Common Stock to be received by WPX stockholders is fixed, the market value will fluctuate.
“Based on the closing price of Devon Common Stock on the NYSE on November 18, 2020, the last practicable trading day before the date of the accompanying joint proxy statement/prospectus, the exchange ratio represented approximately $6.59 in value for each share of WPX Common Stock,” stated the SEC filing.
Devon estimated that immediately prior to the merger, its stockholders will hold about 57% and WPX stockholders will hold about 43% of the issued and outstanding shares of Devon stock.
Click here to view the SEC filing.