Tulsa’s WPX Energy has completed its previously announced acquisition of Felix Energy, which has operations in the eastern portion of the Permian’s Delaware Basin.
The acquisition was overwhelmingly approved by WPX shareholders at a special meeting held on March 5, 2020, where more than 99.6 percent of votes cast were in favor of the transaction.
“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,” said WPX Chairman and Chief Executive Officer Rick Muncrief.
“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,” Muncrief added.
As expected, Felix was producing 60 MBoe/d (70% oil) at the close of the transaction. Including these assets, WPX now produces more than 150,000 barrels per day of oil from its operations in the Delaware and Williston basins.
Upon close, an entity controlled by EnCap Investments L.P. – the financial sponsor for Felix – received consideration of approximately 153 million shares of WPX stock and $900 million in cash.
Along with the close, WPX added two representatives from EnCap – D. Martin Philips and Douglas E. Swanson, Jr. – to its board of directors effective immediately.
“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,” said Muncrief.
Barclays and Tudor, Pickering, Holt & Co. acted as financial advisors to WPX on the transaction. Weil, Gotshal & Manges LLP served as legal advisor to WPX.
Jefferies LLC acted as financial advisor to Felix on the transaction. Vinson & Elkins LLP served as legal advisor to Felix.
Source: WPX Energy release