Topic: How To Invest

Power Growth Investor Hotline – Friday, October 2, 2020

Article Excerpt

DEVON ENERGY CORP., $9.60, is a buy for aggressive investors. The company (symbol DVN on New York) is a leading producer of oil and natural gas from wells in Wyoming, Texas, Oklahoma and New Mexico. Devon announced this week that it plans to merge with WPX Energy (symbol WPX on New York) to create one of the biggest U.S. shale producers. Under the merger agreement, WPX shareholders receive 0.5165 shares of Devon for each share of WPX common stock they own. Devon shareholders would own about 57% of the combined entity, and WPX shareholders about 43%. The deal should help the two companies ride out the oil-market slump that has continued as the coronavirus pandemic hurts global demand. Together, the companies would produce about 277,000 barrels of oil a day, with most of that coming from 400,000 net acres in the Delaware Basin. It’s the western part of the U.S.’s largest oil-producing region in West Texas and New Mexico. Apart from considerable cost savings resulting…