Exploration & Production

Acquisitions & Divestitures

WPX Completes $2.5 Billion Acquisition Of EnCap-backed Felix Energy

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

Emily

Patsy

HartEnergy.com

Fri, 03/06/2020 - 02:05 PM

WPX Completes $2.5 Billion Acquisition Of EnCap-backed Felix Energy

Oilfield workers break down and haul off pipe after testing a well WPX Energy’s Delaware Basin position in Loving County, Texas, in March 2017. (Source: Hart Energy)

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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Emily Patsy

Emily Patsy is the senior managing editor for Hart Energy’s Digital News Group. She's responsible for the daily news flow and also manages the A&D Watch and Energy Pulse weekly newsletters.

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