A deal worth $863 million dollars has been announced between Tulsa-based WPX Energy and San Antonio, Texas based Howard Energy Partners to expand their development in the Permian’s Delaware Basin.
The joint venture is designed to support WPX’s drilling operations in the Stateline area, representing 50,000 acres or 37 percent of WPX’s nearly 135,000 net acre position in the Delaware according to an announcement from the company.
The announcement indicated it is a 50/50 joint venture in which Howard Energy Partners will finish constructing crude oil gathering assets already under construction and a planned natural gas processing complex. Howard Energy will also serve as the operator.
The transaction implies a value of $863 million for Stateline oil gathering and gas processing projects. WPX will receive $300 million upfront from Howard Energy Partners. The first $263 million of joint venture capital expenditures will be made by Howard Energy.