WPX - Devon-WPX deal seen boosting scale with potential for another suitor

WPX Energy ([[WPX]] +8.8%) surges in early trading to ~$5/share, well above the price implied in the Devon Energy ([[DVN]] +4.8%) merger deal, suggesting shareholders expect a higher offer.Analysts at Tudor Pickering and Holt say the deal creates material scale in the Delaware Basin while significantly cutting costs and allowing for lower corporate break-evens.Wells Fargo foresees a "moderately higher potential" for another suitor to emerge, citing "solid Delaware Basin assets that would fit nicely within the portfolio of a few other larger peers."Investors will applaud the all-stock deal with the low-single-digit premium, which will allow Devon to preserve its cash-rich balance sheet, Siebert Williams analyst Gabriele Sorbara says.The Devon-WPX deal points to additional sector M&A ahead, says Johnson Rice's Charles Meade, pointing to Concho Resources ([[CXO]] +1.1%) and Pioneer Natural ([[PXD]] +1.8%) as boasting the best balance sheets to digest an acquisition.Heikkinen Energy upgrades both Devon and WPX to its

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Devon-WPX deal seen boosting scale, with potential for another suitor