Devon Energy Corp (NYSE: DVN) reportedly entered into talks with WPX Energy Inc (NYSE: WPX) over a possible $6 billion all-stock merger between the two firms in an effort to blunt the negative effects of the COVID-19 pandemic on American energy.
According to people familiar with the deal, Devon plans to finalize the deal with WPX as early as next week if talks continue. That said, there is a chance that the deal could fall through.
Devon Energy is currently valued at $3.4 billion while WPX holds a valuation of $2.5 billion. If the companies were to merge, the estimated net worth of the combined entity sits at $6 billion. For the two energy producers, this could be a saving grace as the coronavirus continues to choke profits and market demand.
The possible merger follows an ongoing $5 billion deal between Noble Energy (BMV: NBL) and Chevron Corporation (NYSE: CVX), marking the first large acquisition deal of 2020 since the start of the coronavirus pandemic. Chevron aims to acquire Noble’s energy reserves in Israel.
