The energy industry has been a buzz of activities in the wake of the COVID-19 pandemic affecting operations and activities. Oil companies have been the hardest hit in the wake of oil prices plunging to record lows. In contrast, companies focused on renewable energy have enjoyed booming business as focus shift to zero e-mission sources of power.
Devon Energy- WPX Energy Merger
Devon Energy Corp (NYSE:DVN) and WPX Energy Inc. (NYSE:WPX) are some of the companies hard hit on prospects in the oil industry turning sour. The two have since confirmed plans to merge in an all-stock deal as they seek to reinvigorate their waning prospects in the embattled industry.
Under the terms of the merger deal, WPX shareholders are to receive 0.5165 shares of Devon for each share held. Once the deal is consummated, Devon shareholders are to own 57% of the combined company with WPX shareholders owning 43%. The combined company should enjoy enhanced scale, improved margins, and higher free cash flow.
As Devon Energy and WPX Energy try to reinvigorate their prospects in the fossil fuel segment, investments on renewable energy are gaining pace. Likewise, the U.S Army’s Fort Bragg in North Carolina will soon be home to the largest solar plant. Duke Energy Corp (NYSE: DUK) is in the process of constructing a 1.1-megawatt system as part of a Utility Energy Service Contract.
The $36 million contracts should enhance energy resilience and security at Fort Bragg, in addition to infrastructure modernization. Duke Energy’s prime contractor, Ameresco, is to build a 1.1MW floating solar PV system on the big Muddy Lake. Fort Bragg is to own and operate the system once construction is complete.
Separately, SHARC International Systems Inc. (CSE: SHRC) is to present the Success of its Wastewater energy recovery demonstration to the US municipality and utility decision-makers. The company is one of only three selected by the Tennessee Valley Authority, one of the largest utilities serving more than 150 companies across the U.S.
The invite comes at a time when SHARC is in the process of completing one demonstration project in partnership with EPRI. The company has devised a technology that recovers thermal energy going down the drain in the water used every day.