Regions

Devon Energy and Crosstex Energy forge new company

October 21
6:50 PM 2013

Two energy firms, namely Devon Energy and Crosstex Energy had entered into an agreement wherein Devon would acquire all of Crosstex's shares. The agreement would also see that the company pipelines and processing facilities would be combined under one entity.

The said entity would consist of a master-limited partnership, with a general partner at the helm of the company. In a joint statement, the two partnerships would publicly traded. According to estimates, Crosstex would have a market capitalization of USD983 million, with each shareholder receiving a unit in the general partnership and a one time share payment amounting to USD2 per shares.

Devon would control both partnerships and become the new firm's largest customer. It would be contributing assets totalling USD4.8 billion. The business would have nearly 7,300 miles of laid pipelines, 13 processing plants and six fractionators with facilities to store and transport to move said oil and gasoline.

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