Devon, Crosstex merging, create new midstream co.

 

DALLAS (AP) — Devon Energy Corp. has reached an agreement with Crosstex Energy Inc. and Crosstex Energy LP to combine assets and form a new midstream business.

The planned merger announced Monday involves pipelines, processing and logistics operations.

Devon is an independent oil and gas exploration and production company based in Oklahoma City. Dallas-based Crosstex offers energy services and infrastructure.

- FWBP Digital Partners -

No name was immediately released for the new company, which will have about 7,300 miles of pipelines, 13 processing plants, plus terminals and storage. Devon will own 70 percent of the new company, to be based in Dallas. The Crosstex name will be dropped.

Crosstex CEO Barry Davis, who’ll be chief executive officer of the new company, said Tuesday that no layoffs are planned.

The deal is expected to close in early 2014.