US-based oil and gas company, WPX Energy has completed the acquisition of a Delaware Basin operator, Felix Energy.
The transaction follows an agreement signed to acquire Felix Energy in December last year, in a cash-cum-stock deal worth $2.5bn .
At the time of closing of the transaction, the Felix Energy acreage was producing approximately 60MBoe/d (70% oil).
WPX chairman and CEO Rick Muncrief said: “I want to thank the Felix team for working with us to complete the transaction a month ahead of schedule while still hitting our expectations for production at the time of closing
“We remain absolutely convinced about the accretive nature of the transaction and the outstanding quality of these assets.
“They overlie a tremendous resource that clearly gives us the means for accelerating our ability to achieve our five-year targets for shareholders.”
WPX currently produces more than 150,000 barrels per day of oil
With the acquisition of Felix Energy’s assets, WPX currently produces more than 150,000 barrels per day of oil from its operations in the Delaware and Williston basins.
For the sale of assets, an entity controlled by EnCap Investments, which is Felix’s financial sponsor, has received about 153 million shares of WPX stock and $900m in the form of cash.
Muncrief added: “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.”
WPX is an independent energy producer with a major presence in the Permian and Williston basins. Through acquisitions of RKI Exploration & Production, Panther Energy and Felix Energy, the company has expanded its position in the Permian basin.
