Pulses must be racing right now at Tulsa-based WPX Energy in anticipation to finalize the deal on its acquisition of Denver-based Felix Energy. WPX announced in December the $2.25 billion merger that will augment its already large, juicy position in the Delaware sub-basin with 58,500 net acres and 1,500 undeveloped locations in the Wolfcamp and Bone Spring formations. Expected production in this oil-rich area? A sweet 60 MMBPD. Felix’s recent multi-well pads with at least 12 months of cumulative gross production average 240,000 Bbls of oil per well. WPX operates more than 700 wells across 100,000 net acres in the Delaware where it’s identified 5,500 drilling locations that the company says represents 1.1 billion Bbls of resource potential. A perfect family fit between these two Delaware players is undeniable as WPX launches a five-year plan with shareholders, debt reduction and free cash flow grabbing the top spots. The Felix transaction is set to close in the second quarter. Somebody pass the popcorn on this deal.
Posted on February 11, 2020