|
(Reuters) - U.S. oil and gas producer WPX Energy Inc <WPX.N>
said on Monday it would buy privately held Felix Energy in a
$2.5 billion deal, adding acreage in the Delaware Basin, which
is part of the prolific Permian.
Felix's about 1,500 gross undeveloped locations in the eastern
portion of the Delaware basin are expected to produce about
60,000 barrels of oil equivalent per day, the company said.
The deal, which is expected to close early in the second quarter
of 2020, consists of $900 million in cash and $1.6 billion in
WPX stock.
WPX said it would add two members to its board from EnCap
Investments LP, the private equity company that founded Felix.
The deal will add to earnings per share, free cash flow per
share, the company said.
WPX said it has obtained committed financing from Barclays for
the deal and has access to a $1.5 billion revolving credit
facility.
Barclays and Tudor, Pickering, Holt & Co are financial advisers
to WPX and Weil, Gotshal & Manges LLP the legal adviser, while
Jefferies LLC is the financial adviser to Felix and Vinson &
Elkins LLP the legal adviser.
(Reporting by Shanti S Nair in Bengaluru; Editing by Sriraj
Kalluvila)
[© 2019 Thomson Reuters. All rights
reserved.] Copyright 2019 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
