Devon Energy Corp. (NYSE: DVN), Crosstex Energy Inc. (Nasdaq: XTXI) and Crosstex Energy LP (Nasdaq: XTEX) are merging.

Devon’s assets will be combined with Crosstex to form a new midstream energy business. The new company will consists of two publicly traded companies, the master limited partnership and the general partner entity.  The company is an Oklahoma City-based energy company that produces gas.

Crosstex Energy LP is a Dallas-based company that provides services to energy companies. Crosstex Energy Inc., also headquartered in Dallas, owns part of Crosstex Energy LP, and also provides services to the oil and gas industry.

The combination of the companies’ assets will provide the new company with midstream systems, pipelines and processing assets. The company’s assets are in the Barnett Shale, Permian Basin, Cana and Arkoma Woodford, Eagle Ford, Haynesville, Gulf Coast, Utica and Marcellus regions.

In exchange for a controlling interested in both the master limited partnership and general partner entities, Devon will contribute its equity interest in a newly-formed subsidiary and $100 million in cash.

The deal comes at a busy time for the oil and gas industry, which has recently seen deals by Azure Midstream Holdings LLC, which agreed to pay $910 million for energy company TGGT Holdings LLC in October, and Crestwood Midstream Partners LP, which acquired Arrow Midstream Holdings LLC for $750 million. 

Bank of America Merrill Lynch acted as Devon’s financial adviser, while Vinson & Elkins LLP acted as legal counsel. Greenhill & Co. LLC acted as Crosstex’s financial adviser, and Baker Botts LLP and Richards Layton & Finger PA provided legal advice. Citigroup Global Markets Inc. acted as financial adviser to Crosstex Energy Inc., while Evercore acted as financial adviser to Crosstex’s special committee. Potter Anderson Corroon LLP acted as legal counsel for the special committee. Simmons & Co. provided financial advice, and Morris Nichols Arsht & Tunnell LLP provided financial advice, to Crosstex’s conflicts committee. 

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