Devon to Acquire Mitchell Energy
- Share via
Devon Energy Corp. said it will buy Mitchell Energy & Development Corp. for $3.1 billion in cash and stock, in a deal that will make Devon the No. 2 independent U.S. natural-gas producer.
The deal continues a wave of consolidation in the U.S. oil and gas industry driven by the acquiring companies’ desire to increase their reserves of natural gas, even though gas prices have fallen from record highs hit late last year.
Oklahoma City-based Devon will pay $31 in cash and 0.585 share for each of Mitchell’s shares outstanding. In all, Devon will pay $1.6 billion in cash and issue 30.2 million shares. It also will assume $400 million in debt from Mitchell.
The deal, approved by the boards of both companies, values Mitchell, based in The Woodlands, Texas, at $60.40 a share, representing a 32% premium over Monday’s closing price of $45.65.
Shares of Mitchell jumped $14.18, or 31%, to $59.83 on the New York Stock Exchange. Devon rose 50 cents to $50.76 on the American Stock Exchange.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
