WPX Energy Inc. on March 6 completed its $2.5 billion acquisition of Felix Energy II, growing its position in the Permian’s Delaware Basin which CEO Rick Muncrief believes will help the U.S. shale producer generate shareholder returns.

Backed by EnCap Investments LP, Felix Energy has a 58,500 net acre position in an overpressured, oily portion of the Delaware Basin in West Texas. Tulsa, Okla.-based WPX had entered an agreement to acquire the company in mid-December.

WPX expected the transaction—the largest E&P deal announced in the U.S. during the fourth quarter—to significantly boost its free cash flow in 2020 at $50 oil, allowing the company to implement a dividend.

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