trending Market Intelligence /marketintelligence/en/news-insights/trending/DLgPTatTjqbIQrrmfqPw3w2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

In This List

UPDATE: WPX Energy inks $2.5B deal for privately backed Permian producer

Case Study: A Utility Company Efficiently Sharpens Its Focus on the Credit Risk of New Customers

Energy Evolution Podcast

Energy Evolution Why solar energy could get even cheaper

Energy Evolution Podcast

US energy officials push innovation to meet evolving energy needs

Energy Evolution Podcast

Energy futurist sees major challenges for renewables in next 30 years

UPDATE: WPX Energy inks $2.5B deal for privately backed Permian producer

Placing a huge bet that Permian oil assets will drive its future, WPX Energy Inc. struck a $2.5 billion deal to acquire Delaware Basin-focused producer Felix Energy LLC.

The deal consideration will be paid $900 million in cash and $1.6 billion in WPX stock, equivalent to 153 million shares as of Dec. 13, to be issued to Felix Energy, according to a Dec. 16 news release.

Felix's assets comprise 1,500 undeveloped locations in the eastern Delaware Basin, with an expected production of about 60,000 barrels of oil equivalent per day, 70% of which is oil. Felix owns 58,500 net acres in an oily portion of the basin. About 25 wells are needed to hold almost all the rights in the Wolfcamp and Third Bone Springs formations, with half of the wells expected to be drilled in 2020.

WPX Energy said it plans to fund the acquisition through the sale of $900 million of its senior notes, committed financing from Barclays and a $1.5 billion revolving credit facility.

Deal completion is scheduled for early in the second quarter of 2020, subject to customary closing conditions and the approval of WPX Energy's shareholders. The deal already received the unanimous approval of the company's board.

WPX Energy plans to declare a dividend of 10 cents per share on an annualized basis after the deal closing. The company also anticipates adding two members to its board from private equity company EnCap Investments LP, the founder of Felix Energy.

Barclays and Tudor Pickering Holt & Co. acted as the financial advisers, while Weil Gotshal & Manges LLP served as the legal adviser to WPX Energy. Jefferies LLC and Vinson & Elkins LLP served as the financial adviser and legal adviser to Felix, respectively.