WPX Expands Permian Footprint with Felix Energy Acquisition
WPX Energy has acquired Felix Energy, which has operations in the eastern portion of the Permian’s Delaware Basin. The deal got the green light from WPX shareholders last week.
“We remain absolutely convinced about the accretive nature of the transaction and the outstanding quality of these assets,” WPX Chairman and Chief Executive Officer Rick Muncrief said in a statement. “They overlie a tremendous resource that clearly gives us the means for accelerating our ability to achieve our five-year targets for shareholders.”
Felix was producing 60 MBoe/d (70% oil) at closing. Including these assets, WPX now produces more than 150,000 barrels per day of oil from its operations in the Delaware and Williston basins, according to the company.
At closing, an entity controlled by EnCap Investments LP (financial sponsor for Felix) received consideration of 153 million shares of WPX stock and $900 million in cash.
In conjunction with the close, WPX added EnCap representatives D. Martin Philips and Douglas E. Swanson, Jr. to its board, effective immediately.
“We’re excited to add Marty and Doug to our board. Their considerable experience in industry and their private equity backgrounds adds a unique perspective to WPX and how we can further create value as a company,” stated Muncrief.
WPX is an independent energy producer with core positions in the Permian and Williston basins. The company built its Permian position through acquisitions of RKI Exploration & Production, Panther Energy and Felix Energy, along with the formation of a midstream joint venture with Howard Energy Partners.
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