WPX - The Devon-WPX Merger Could Be a Consolidation Blueprint for the Oil Patch
The oil industry has an abysmal track record of creating value for investors, especially when it comes to merger-and-acquisition (M&A) transactions. Recent deals have caused financial ruin because most companies were too bullish on their oil price assumptions, which came back to bite them when crude crashed earlier this year.
However, even though the industry's prior attempts at consolidation failed , it still must go down that path, given the need to cut costs to better combat persistently low oil prices. It might finally have found the right strategy blueprint in Devon Energy 's (NYSE: DVN) merger of equals with WPX Energy (NYSE: WPX) .
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The Devon-WPX Merger Could Be a Consolidation Blueprint for the Oil Patch