Devon Energy Corp. (DVN) and WPX Energy Inc. (WPX) are negotiating a deal to unite in a merger of all equals, in a move that could help them resist the prolonged fall amid the Covid-19 pandemic.

The deal will create a company with a combined market value of about $ 6 billion. Devon has a market value of $ 3.38 billion and WPX is $ 2.49 billion.

The news was good news for investors in both companies, both based in Oklahoma. Its inventories have fallen more than 60% this year.

Devon (DVN) shares were at $ 9.15 at the start of Monday’s trading session, 4% above Friday’s close.

WPX was at $ 4.65, an increase of 4.6%. The Dow Jones Industrial Average was up 1.4%.

Devon boasts a market capitalization of around $ 3.4 billion, compared to $ 2.5 billion for WPX. But in a Devon press release, the deal was classified as a merger of equals. The combined company will be named Devon.

The statement said the deal would be accretive in the first year, give the combined company more scale, and provide expected cost savings that “will generate $ 575 million in annual cash flow improvements” by the end of next year.

Dave Hager, president, and CEO of Devon will be named executive chairman of the board. Rick Muncrief, the chief executive of WPX and its president, will be named president and CEO of the combined company.