Devon Energy Corp. has completed its all-stock merger of Lower 48 rival WPX Energy Inc., giving the independent an even bigger toehold in the Permian Basin’s Delaware formation.

Devon and WPX acreage

The combined company, operating under the Devon moniker, would continue to be headquartered in Oklahoma City. The takeover of WPX was announced in September. 

The transaction gives Devon shareholders 57% of the combined company, with WPX holding the remaining 43% stake.

“This transformational merger enhances the scale of our operations, builds a dominant position in the Delaware Basin and accelerates our cash-return business model that prioritizes free cash flow generation and the return of capital to shareholders,” said Executive Chairman Dave Hager. “We are excited to combine our teams and we look forward to executing on our disciplined strategy to create value for all of our stakeholders.”

WPX CEO Rick Muncrief, who was named Devon’s CEO, said the transaction “paves the way for our integration to pick up even more steam and establishes Devon as one of the strongest energy producers in the U.S. 

“The combined company’s advantaged assets, operating capabilities, balance sheet, and our resolve to pursue efficient, innovative ways of doing business positions Devon to deliver differentiated financial and operational results for many years to come.”

During the third quarter conference call, Devon raised its production guidance and lowered exploration costs. For the second consecutive quarter, Devon at the time increased its full-year 2020 oil production forecast to 152,000-154,000 b/d on better-than-expected well productivity and strong base production performance.