Hackett said the merger provides longer-term growth.
"Being the smaller company, we looked at our options, and we think this is clearly the home run that is out there for our investors," he said.
The new company is expected to produce 653,000 barrels of oil equivalent a day, making Devon the largest U.S.-based independent oil and natural gas producer. About 90 percent of the production is in North America.
The company is expected to have 2.2 billion barrels of oil equivalent in proved reserves with 84 percent in North America.
"The merger dramatically increases our exposure to the Gulf of Mexico and gives us a significantly expanded presence internationally and strengthens our balance sheet," Nichols said. "It also dramatically increases our ability to grow production."
The transaction is expected to give the new company a comfortable 52 percent debt-to-capitalization ratio.
Devon will issue 72.4 million new shares to Ocean sharehold ers, who will receive 0.414 shares of Devon common stock for each common share of Ocean. Based on Devon's closing stock price of $48.23 a share on Friday, the company will issue more than $3.5 billion worth of new shares.
Devon also will assume about $1.8 billion of Ocean's debt and other obligations, putting the total value of the transaction at $5.3 billion.
The merger plans will be submitted to the Securities and Exchange Commission. If the SEC decides not to review the merger, the deal is expected to close in early May. If a review is ordered, the closing date will be delayed.Archive ID: 1181186