WPX Energy (WPX - Get Report) has picked up 6,500 barrels of oil equivalent per day of production and added 18,100 net acres to its holdings in west Texas' Delaware Basin in a $775 million deal with two private equity-backed companies, the Tulsa, Okla.-based oil producer said Thursday, after the markets closed.
The seller is a joint venture created by Kayne Anderson Capital Advisors-backed Panther Energy Company II and Riverstone Holdings-backed Carrier Energy Partners, which was formed in August 2014 to develop 15,000 acres in Culberson, Reeves and Pecos counties in West Texas.
The private companies on Thursday agreed to sell WPX 18,000 net acres in Reeves, Loving, Ward and Winkler counties in Texas and 920 gross undeveloped locations in the geologic sweet spot of the Delaware Basin, WPX said.
WPX's acquisition also includes 6,500 Boe/d (55% oil) of existing production from 23 producing wells (17 horizontals) and two drilled but uncompleted horizontal laterals. Keeping up with the trend in recent oil and natural gas transaction, WPX announced it had issued 42 million shares of its common stock, which would raise less than $580 million at its $13.78 per share closing price Thursday.
The company also allotted the underwriters the option to purchase 6.3 million shares, which would raise an additional $87 million at Thursday's closing price. Credit Suisse Group is acting as lead bookrunning manager for the offering.
Boutique investment bank Tudor, Pickering, Holt & Co. provided financial advice to WPX on the deal. The company's shares dropped nearly 2% on the news in after-market trading.