Tulsa-based WPX Energy announced Thursday that it is acquiring assets in the Delaware basin for $775 million, increasing its Permian operations to more than 120,000 net acres, according to a recent report in The Tulsa World.
The assets include approximately 6,500 barrels of oil equivalent per day of existing production from 23 producing wells; two drilled but uncompleted horizontal laterals; 18,100 net acres in Reeves, Loving, Ward and Winkler counties in Texas; and 920 gross undeveloped locations in the geologic sweet spot of the Delaware Basin, according to the report. A company press release confirmed that 55 percent is oil.
“In just 18 months, WPX has firmly established itself as a leader in the Delaware Basin,” said Rick Muncrief, WPX Chairman, President and CEO. “The acquisition leverages our experience to create long-term shareholder value, further builds our inventory of core acreage and accelerates our oil growth with cash on hand and operating cash flow without adding incremental debt.”
The oil and gas producer is acquiring the assets from Panther Energy Co. II LLC and Carrier Energy Partners LLC. With the deal to the paid with $600 million in cash plus proceeds from a public offering, WPX plans to close the transaction in approximately 60 days.
WPX has added nearly 32,000 acres in the Delaware Basin at an average cost of $18,600 per acre since securing a significant acquisition from RKI Exploration and Production in August of 2015.
