Tulsa-based WPX Energy has announced a public offering of 45,000,000 shares of common stock for nearly $600.8 million. At the same time, the company has announced it’s moving ahead with the purchase of 120,000 acres in the Delaware Basin in west Texas. The purchase includes 23 producing wells.
The company said Friday it has granted the underwriters a 30-day option to buy up to another 6,675,000 shares of its common stock. The previous announced offering was 42,000,000 shares of common stock so the latest announcement is an increase of 3,000,000 shares.
Underwriters plan to offer the shares from time to time for sale in one or more transactions on the New York Stock Exchange in the over-the-counter market and through negotiated transactions.
The offering is expected to close on or around Jan. 19, 2017. WPX said it will use the net proceeds to finance the acquisition of certain assets of Panther Energy Company II, LLC and CP2 Operating LLC.
If the acquisitions don’t occur, WPX will use the proceeds for working capital needs. Panther Energy is based in Tulsa and is an oil and gas exploration company that focuses its effort in Oklahoma and Texas. Most of its efforts now are in the Permian Basin. CP2 Operating is based in Sugar Land, Texas.
The Delaware Basin purchases are in Reeves, Loving, Ward and Winkler counties in Texas where WPX Energy says there are 920 undeveloped locations.