Devon Energy Corp. and WPX Energy Inc. are in talks to combine, according to people familiar with the matter, in a move that could help the energy companies weather a prolonged industry slump. The companies are discussing an all-stock deal that would create an entity with a combined current market value of about $6 billion. The deal could be completed as soon as this week, assuming the talks don’t fall apart, the people said. Devon has a market value of roughly $3.4 billion, while WPX’s is about $2.5 billion. Small and midsize oil-and-gas companies like Devon and WPX have performed poorly in recent years and faced pressure from investors to deliver more consistent profits and cash flow.

Source: Wall Street Journal September 26, 2020 21:42 UTC