Devon and Ocean Energy merge

Devon Energy Corp. and Ocean Energy Inc. have agreed to merge. The merged company will be named Devon Energy Corp. and will be headquartered in Oklahoma City. Devon will become the largest US-based independent oil and natural gas producer with production of 650,000 b/d, and upon completion of the merger, will have an enterprise value of $20 billion.

Devon Energy Corp. and Ocean Energy Inc. have agreed to merge. The merged company will be named Devon Energy Corp. and will be headquartered in Oklahoma City. Devon will become the largest US-based independent oil and natural gas producer with production of 650,000 b/d, and upon completion of the merger, will have an enterprise value of $20 billion.

"Combining our two companies creates a balanced portfolio with North American and international assets, increased oil and gas production capabilities, and greater internal growth opportunities through an active exploration program," said J. Larry Nichols, Devon's chairman, president, and CEO. "Ocean's high-impact, deepwater projects, and complementary management skills make this a win-win transaction."

"This merger combines the strong North American portfolio of Devon with the growth profile of Ocean," said James T. Hackett, chairman, president, and CEO of Ocean Energy. "As part of a much larger organization, our shareholders will benefit from the superior access to capital necessary to accelerate key exploration and development opportunities. It also provides a commodity mix weighted positively toward North American natural gas and creates a better balance between exploration and exploitation, minimizing the risk associated with high-impact exploration."

02/24/03

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