Devon Energy to acquire shale-oil rival WPX Energy for $2.56 billion

US oil and gas producer Devon Energy Corp said on Monday it will buy shale-oil rival WPX Energy Inc for $2.56 billion as it looks to boost its presence in the top US oilfield.

The all-stock deal comes as US shale companies have posted big losses on weak crude prices amid the Covid-19 pandemic and have struggled to raise new capital to restructure debt.

But as producers seek out combinations to survive the coronavirus-induced slump in demand, deals at little or no premium are becoming the norm.

Investors cheered the deal, pushing up WPX shares 17 per cent in Monday afternoon trading, to