Devon Energy Corp. and WPX Energy Inc. agreed on Sept. 28 to combine in an all-stock transaction the two U.S. shale producers called a “merger of equals.”

The combined company, which will be named Devon Energy, will create a leading unconventional oil producer in the U.S. with a dominant Delaware Basin acreage position totaling 400,000 net acres. Including the assumption of $3.2 billion in net debt, the all-stock transaction is valued at about $5.75 billion.

The announcement confirms reports that Devon and WPX were considering a merger made by the Wall Street Journal on Sept. 26 citing people familiar with the matter.

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