WPX - Why WPX Energy Jumped 13% Today
Shares of domestic exploration and production company WPX Energy (NYSE: WPX) were higher by roughly 13% at 11 a.m. EDT today. Following along for the ride, but not quite to the same extent, was Devon Energy (NYSE: DVN) , which was up just shy of 10%. Their gains were both related to the same news item.
WPX, with a roughly $2.8 billion market cap, and Devon, weighing in at around $3.7 billion, agreed to combine their companies in an all-stock deal. WPX shareholders will receive 0.5165 shares of Devon stock for every share of WPX they own. Devon Energy shareholders are expected to own 57% of the combined entity when all is said and done. Though it is being pegged as a merger of equals, Devon Energy will be the name that survives the deal. The CEO and chairman of WPX will end up being the CEO and president of the combined entity, with the CEO and president of Devon taking on the executive chairman role. So, in some ways, the key executive duties are being split fairly equally across the two companies. Investors clearly liked the deal, for both names.
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Why WPX Energy Jumped 13% Today