"The strategic combination will create a leading unconventional oil producer in the U.S., with an asset base underpinned by a premium acreage position in the economic core of the Delaware Basin," the companies said in a joint statement. The combined company will be named Devon Energy, and will enjoy "enhanced scale, improved margins, higher free cash flow and the financial strength to accelerate the return of cash to shareholders through an industry-first "fixed plus variable" dividend strategy," said the statement. The deal is expected to immediately boost all relevant per-share metrics in the first year, including earnings, cash flow, free cash flow, and net asset value, and to be accretive to return on invested capital. It will have about $1.7 billion of cash on hand and $3 billion of capacity on a credit facility expected at closing. Devon shares jumped 11% premarket on the news, while WPX was up 18%.