Devon Energy and Ocean Energy Complete Merger; Creating Largest U.S. Independent Oil and Gas Producer
OKLAHOMA CITY and HOUSTON, April 25 /PRNewswire-FirstCall/ -- Devon Energy
Corporation (Amex: DVN; Toronto: NSX) and Ocean Energy, Inc. (NYSE: OEI)
announced today the completion of their merger. With the merger, Devon is the
largest U.S.-based independent producer of oil and gas.
Shareholders of both companies overwhelmingly approved the transaction at
special shareholder meetings earlier today. Over 98 percent of shares
represented at both the Devon and Ocean meetings, which in each case
represented a majority of the outstanding voting power, were voted in favor of
In the transaction, each Ocean common share was converted into 0.414 of a
share of Devon common stock and Ocean became a subsidiary of Devon.
Conversion requires issuance of approximately 74 million additional Devon
common shares, resulting in total shares outstanding of approximately
231 million. The transaction is being accounted for as a purchase of Ocean by
"This is a great day for Devon and our shareholders," said J. Larry
Nichols, Devon's chairman and chief executive officer. "Our merger with Ocean
brings us a wealth of talent and participation in a broad array of drill-bit
growth opportunities in the Gulf of Mexico and abroad."
"This merger gives Ocean shareholders valuable North American natural gas
exposure and a stake in a company with the financial strength to accelerate
our exploration and development activities," said James T. Hackett, president
and chief operating officer of Devon. Mr. Hackett, formerly chairman,
president and chief executive officer of Ocean, added that, "Devon's wells
account for about four percent of the natural gas produced in the United
States and Canada, and we are exploring for new oil and gas reserves in some
of the world's most promising areas."
The Combined Company
-- With an enterprise value of over $20 billion, Devon is the largest
U.S.-based independent producer of oil and gas.
-- Devon has proved oil and natural gas reserves of approximately
2.2 billion equivalent barrels.
-- Pro forma production is 63 percent gas, 37 percent liquids.
-- Pro forma production is 90 percent North American, 10 percent
international and totals approximately 653,000 equivalent barrels of
oil per day.
-- The combined company holds more than 27 million net undeveloped acres
worldwide, including the largest lease position of any independent in
the deepwater Gulf of Mexico.
Exchange and transmittal of shares
Shareholders of Ocean will receive written instructions for exchanging
their shares for shares of Devon. The exchange and transmittal process will
begin promptly. Questions concerning this process should be directed to the
Exchange Agent, Wachovia Bank, N.A., at its toll free number (800) 829-8432.
Current Devon shareholders will retain their existing shares.
Devon Energy Corporation is an Oklahoma City-based independent energy
company engaged in oil and gas exploration, production and property
acquisitions. Devon is the largest U.S.-based independent oil and gas
producer and is included in the S&P 500 Index. For more information about
Devon, please visit our website at www.devonenergy.com .
This press release includes "forward-looking statements" as defined by the
Securities and Exchange Commission. Such statements are those concerning the
strategic plans, expectations and objectives for future operations. All
statements, other than statements of historical facts, included in this press
release that address activities, events or developments that the company
expects, believes or anticipates will or may occur in the future are forward-
looking statements. These statements are based on certain assumptions made by
the company based on its experience and perception of historical trends,
current conditions, expected future developments and other factors it believes
are appropriate in the circumstances. Such statements are subject to a number
of assumptions, risks and uncertainties, many of which are beyond the control
of the company. Statements regarding future production are subject to all of
the risks and uncertainties normally incident to the exploration for and
development and production of oil and gas. These risks include, but are not
limited to, inflation or lack of availability of goods and services,
environmental risks, drilling risks and regulatory changes. Investors are
cautioned that any such statements are not guarantees of future performance
and that actual results or developments may differ materially from those
projected in the forward-looking statements.
SOURCE Devon Energy Corporation
CONTACT: investors, Zack Hager, +1-405-552-4526, or media, Brian Engel,
+1-405-228-7750, both of Devon Energy Corporation; or investors, Bruce
Busmire, +1-713-265-6161, or media, Janice Aston White, +1-713-265-6164, both
of Ocean Energy, Inc